Gold Enters the Biden Era

This past week has been one of the most anticipated and arguably stressful weeks the United States has ever experienced. Donald Trump’s reign has officially come to an end. We are now entering a new era under a new leader with a much different outlook than Trump. Now that Joe Biden has officially been sworn in as the 46th President of the United States, we can expect for him and his team to be rolling out with their plans for managing the US and economic recovery from the pandemic. Biden’s plans are going to be very expensive. It was announced that his team is planning on spending $1.9 Trillion towards stimulus packages to help the economy recover. Biden also stated he plans to increase the minimum wage from $7.25 to $15 per hour. These plans are only the tip of the iceberg of what the Biden administration plans to spend. This would in turn result in an even more inflated US Dollar which would result in our safe-haven assets (Gold & Silver) to go up in value. With all these expenditures, Biden’s presidency looks to be more positive for precious metals. Gold prices have yet to go back above $1900 (USD/Oz), therefore making it crucial for all investors to get their Gold, Silver, and other precious metals orders in before the prices inevitably shoot up.

The week began slowly for Gold and the market in general as investors and traders waited patiently to place their trades and orders on inauguration day. Early in the week Gold closed at $1836.28 (USD/Oz).

Wednesday was inauguration day. In anticipation of Biden’s plans as President, Gold prices shot up as expected. Gold closed the day at $1871.61 (USD/Oz).

End of the week Gold prices rebounded down as a result of a stronger US Dollar. Due to the inverse relationship with the Dollar, prices closed at $1854.34 (USD/Oz) to end the week.