More Accommodative Fed Key to Next Gold Price Surge

Gold last traded at $1,877 an ounce. Silver at $24.33 an ounce.

NEWS SUMMARY: Precious metal prices rebounded Tuesday on bargain-hunting and a weaker dollar. U.S. stocks fell, led by tech, as investors moved out of stocks which thrived during the pandemic and into stocks linked to an economic recovery.

 FX Empire---"Bullish gold investors received a couple of gifts last week - Democrat Joe Biden was elected president of the United States and the U.S. Federal Reserve reiterated their support for the economy. The gift wasn't perfect, however, as the Democrats lost a few House votes and it looks as if the Republicans will retain control of the Senate....A Democratic president and House, and a Republican Senate is ideal for the gold market. Since neither party controls the Congress, both trade wars and higher taxes are largely off the table. Furthermore, the prospect of more gridlock also means that expectations for a massive U.S. fiscal stimulus package have been lowered. Removing massive coronavirus stimulus from the agenda sent bond yields sharply lower in anticipation of less borrowing and more quantitative easing from the U.S. Federal Reserve....The short-term outlook is clouded by doubts where fiscal policy may be headed in coming weeks, or how smooth the transition between an incoming Democratic administration led by Joe Biden and lame-duck administration led by Republican President Donald Trump will be. We are certain that a combination of fiscal stimulus, no matter what size, and a continuation of the Fed's emergency programs will be bearish for the U.S. Dollar and bullish for gold prices."