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Date:
22nd Feb 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Gold prices rebounding; Will Bidenomics drive the Bullion Higher?

The sky is, after all, not falling on gold and other precious metals. In the last few weeks, as the marauding greenback threatened to swing, unhinging gold bugs from their comforts, gold prices rebounded higher on Friday. Bearish sentiment on the yellow metal and counterbalancing news about inflation-inducing Bidenomics could spell doom to bears. 


Details: 

Bond yields may be rising, but the intervention from the FED could see a delicate balancing act being fronted, benefiting the economy while propping gold prices, a refuge for risk-averse investors. A glance at the gold price action shows that traders find themselves in uncharted territory. In the short term, whether prices will snap back to trend, printing higher, or slip once the valuation of the greenback and the mega stimulus package Joe Biden plans to roll out is mainly priced depending on the reaction at key price levels especially at around $1.85k. Still, this doesn't mean sellers won't flow back, pushing prices lower in sync with the last two weeks of liquidation in line with the Nov 2020 downtrend. 


Impact on gold Prices: 

Bearish. According to Morgan Stanley's Chief Cross-Asset Strategist Andrew Sheets, the yellow metal's price will decline by the end of 2021, closing just below $1.8k. It will be despite rising inflation that may force the FED to intervene. 


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