Will The Fed’s Jerome Powell Drive Gold Prices Higher or Lower?

Gold prices advanced for a fourth consecutive day as traders weighed prospects for more U.S. stimulus amid concerns over a recovery in the world’s largest economy.

Precious metal prices gained upward momentum on Friday after weaker-than-expected U.S. jobs data re-ignited concerns over a recovery in the world’s largest economy. The closely watched U.S employment report showed job losses in November, December and January were deeper than expected, underscoring the need for additional stimulus.

U.S. President Joe Biden’s $1.9 trillion coronavirus relief bill is expected to fast-tracked through Congress in the coming weeks, despite opposition from Republicans.

In other metals, Platinum prices rallied to a six-year high. The metal is expected to benefit from tight supplies, strong investment demand and the global recovery. All in all, a commodities super-cycle is underway and the precious metals are definitely one of the hottest asset classes to watch in 2021.

Looking ahead to this week, the major focal point for traders will be U.S. consumer price data due on Wednesday and Federal Reserve Chairman Jerome Powell’s speech hosted by the Economic Club of New York.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Best regards,

Phil