On this Wednesday, we take a look at why gold is now rebounding after its five-month period of lackluster performance.

We also found an analyst who is encouraging investors to put on their cowboy hat and boots and grip the rope tight so they will stay on the “silver bull” and not get thrown off.

We also found an excellent report on inflation titled “ Is an Inflationary Decade Ahead?” You can download this report at no charge.

All this and more in today’s precious metals news.

Let’s dig in…

Latest News
Gold Rebounds Thanks to Weaker Dollar and Virus Fears

On Tuesday, the yellow metal rose over 1%--a nice bounce off of its five-month low through the previous session. Gold was helped by a weaker dollar along with rising coronavirus cases, which threw cold water on the vaccine-fueled economic recover that so many were excited about. Spot gold climbed 1.5% to $1,804.33 per ounce by 1217 GMT. U.S. gold futures gained 1.6% to $1,809.60. The metal clocked its worst monthly fall in four years on Monday, slipping to $1,764.29, the lowest since July 2, as investors flocked to riskier assets such as equities.

Commentary
Stay on the Silver Bull (Hold Tight and Don’t Let Him Buck You Off)

From David Smith at Money Metals news blog: “Gold and silver exchange-traded funds (ETFs), a measure of large investor interest, are experiencing outflows as opposed to an almost interrupted inflow over the last few months. Mining stocks which either look for or produce these metals have been moving sideways, testing the "mettle" of even perma-bulls. Many investors see these as negative signs. But I view it as a Mr. Market's last big effort to "shake the tree," causing as many people as possible to fall off the galloping bull and head for cover. As David Morgan has so aptly – and during times like this, often said, "A precious metals' bull run (especially that of silver) will either wear you out our scare you out!”

Price
Silver Price Makes Jaw-Dropping Rally Back Up 6%

Spot silver (XAG/USD) prices have undergone an enormous more than 6% rally on Tuesday from just above $22.50 at the Monday FX market close to just below $24.00 going into the Tuesday FX close. As things stand, XAG/USD trades with gains of roughly $1.40 on the day. The US 10-year inflation breakeven rose above 1.8% on Tuesday (an indication that markets expect inflation to average 1.8% over the next 10 years), its highest level since…

Commentary
FREE REPORT: Is an Inflationary Decade Ahead?

The boy who cried wolf: “…though the Villagers heard the cry, they did not run to help him as they had before. ‘He cannot fool us again,’ they said. The Wolf killed a great many of the Boy's sheep and then slipped away into the forest.” Know Your Enemy: Understanding Inflation The extraordinary events of 2020 have motivated us to release an In Gold We Trust special on the heightened risk of rising inflation rates. 1.The leitmotiv of this report is the classic children’s fable The Boy Who Cried Wolf, by Æsop. 2. Why have we chosen this? As the story goes, a boy guarding over sheep jokingly cries wolf, twice. After returning to the village twice, the locals decide not to respond when the boy cries again. Little did the villagers know that this time the wolf was attacking the sheep. Similarly, the global paradigm of recent decades with its repeated warnings of inflation has consistently reinforced disinflation. Now, as trust in public institutions continues to erode, populist policies could serve as the bedrock of a new inflationary paradigm.

READ THE FULL REPORT

Commentary
[VIDEO] Here are the Dominant Forces Behind Gold in 2021

Sustained low interest rates, coupled with large levels of debt and an eventual return to inflation will be the dominant drivers of gold in 2021, said Kevin Rich, consultant to the Perth Mint.

WATCH VIDEO

Stock Market
U.S. Gold Futures Starting to Shake Off Coronavirus Shock

Falling costs to roll forward U.S. gold futures contracts suggest the market is moving closer to normal trading after turmoil caused by COVID-19 raised investors’ overheads, curbed activity and funneled massive profits to investment banks. Since March, when volatility linked to the pandemic dampened banks’ willingness to sell futures contracts, the cost of swapping expiring futures for later-dated ones - a “roll” that investors wishing to maintain their positions must perform every few months - has been far higher than usual.

Thanks,
Gold Silver Central