Gold market once again remained caught in a tug of war between expectations of an improving economy and rising inflation pressures as Joe Biden took office. Hopes of a massive stimulus bolstered the prospects for precious metals. Janet Yellen said that tax cut in 2017 for large corporation should be repelled, helping gold/silver to rally. Gold has resistance around $1,865 and needs to break that level for momentum to take it above $1,900. $1,820-$1,810 is the immediate support and we believe gold will trade in range until market gets more clarity on the new administration's policies.
Silver rallied along with gold after Yellen urged lawmakers to "act big" on coronavirus relief spending, adding that the benefits outweigh the expenses of a higher debt burden. In the near term, gains in gold and silver will be limited due to higher yields and some dollar strength. The price gain suggests bears are exhausted and signals that near-term market bottom is in place. Silver bulls next upside price objective is to close the price above $29 which was January high while support is emerging at $25 and $24.36.