Silver is bouncing back now that the retail disruption is behind us. The Reddit frenzy led to silver going on a roller-coaster earlier in the week. Silver will thrive this year as expectations are high for the Biden administration to drive green capex with solar panels getting support via presidential executive orders.
Gold under pressure after solid US numbers
Gold is struggling as demand for safe-havens ease following better-than-expected US economic data. The ADP employment change, final Markit Services reading, and ISM Services index all improved from their readings a month ago and topped expectations. January was supposed to be a bad month for the economy as the country battled the worst of the virus, so these numbers are welcome news.
Gold’s fundamentals still support higher prices but the failure to maintain the USD1,850 level has opened the door for some short-term technical selling. Gold should see investors come in and defend the USD1,800 level if selling pressure picks up.
Italian bonds rallied on expectations Mario Draghi, the former head of the European Central Bank, will bring stability to Italy as the next prime minister. The 10-year yield on Italian debt fell 7.3 basis points to 0.576%. Draghi brings calm to a tense situation as Italy battles a recession and struggles with the fight against COVID.
Bitcoin is rallying after Visa announced their next major step in expanding their digital currency roadmap. Visa partnered with First Boulevard in what will help them enable their customers to purchase, custody and trade digital assets held by Anchorage, a federally chartered digital asset bank.
Bitcoin’s acceptance continues to improve, and Bitcoin is once again making a run towards the upper boundaries of its current consolidation phase. Bitcoin’s next attempt at USD40,000 could easily trigger a wave of momentum trades that target the USD47,500 region.