Metals Minute 7: Metals v. A Second Stimulus
It has been a mixed week for the metals, with a volatile ride lower and back up again. Gold is flat for the week, rising $6.00 to $1867. Silver is up 0.9% to $25.43. Platinum took a breather this week, down (-) 3% to $1018. Palladium is down (-) 0.7%, to $2356.
The 1 year performance numbers continue to shine, with Gold up 26%, Silver up 46%, Platinum up 8.5%, and Palladium up 25% since this time last year.
There is a lot of uncertainty out there, which is typically good for Gold and Silver. With President Trump still challenging the election results, and threatening to veto the current spending bill, it opens the possibility of another government shutdown during or after the holiday season.
While he is demanding Congress increase direct aid to families from $600 to $2000 per adult, it is uncertain whether Congress has the will or time to make it happen before the deadline. If they succeed, it should provide a short-term boost to the economy, helping Platinum and Palladium, and to a lesser degree, Gold and Silver. If there is an impasse, the uncertainty will help Gold and Silver, but may hinder Platinum and Palladium. Here is my Precious Metals Outlook for 2021.