Gold still got it! This week was chaotic for all markets. As president-elect Joe Biden forged ahead with transition planning, U.S. President Donald Trump continued to contest the results.
Yet, the biggest news this week was the coronavirus pandemic and not the election. Gold sold off $100 while silver fell 7% after positive vaccine news on Monday.
However, as the week progressed the attention shifted to record coronavirus numbers, with more than 120,000 cases reported per day. Markets were once again getting nervous that the U.S. would introduce more restrictions. And since more uncertainty usually works in favor of the precious metals, both gold and silver advanced later in the week.
Analysts are still confident that the post-election environment will be great for gold. Orchid Research advised to buy setbacks in gold, citing the post-election environment, which will be defined by more uncertainty, more stimulus, and rising coronavirus cases.
TD Securities said that once markets get past all this noise, a vaccine is actually good news for gold because of the strong inflation expectations.
Wells Fargo told Kitco News this week that it is not ruling out gold hitting $2,100 an ounce by the end of the year and then climbing to $2,300 in 2021.