Gold, silver rally on safe-haven demand

1.29.21 - Lockdown Creates 2-Track Jobs Recovery

Gold last traded at $1,851 an ounce. Silver at $27.00 an ounce.

NEWS SUMMARY: Precious metal prices rose sharply Friday on safe-haven buying amid rampant stock market speculation. U.S. stocks fell after the trial result from Johnson & Johnson's coronavirus vaccine disappointed investors as worries about retail trading frenzy persisted.

Wyckoff/Kitco--Gold and silver prices are rallying in early U.S. trading Thursday, erasing modest overnight losses. It appears there is safe-haven demand surfacing in the precious metals amid the increasing talk and speculation regarding what could happen to short sellers in the U.S. stock market. Hedge fund managers that short sell stocks are spooked and could be buying gold and silver as a hedge against impending losses in their short-stock trades....

The S&P 500 stock index on Wednesday had its worst day since October. Trader and investor risk sentiment has eroded a bit this week. The Covid-19 pandemic continues to ravage many countries, including the U.S. and U.K. If the U.S. stock indexes continue to sell off late this week, that would be one early clue of market tops being in place. More and more market watchers are reckoning the U.S. stock market has become very frothy, what with an economy that is awash in easy money from the Federal Reserve....

Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close in February futures above solid resistance at $1,900.00."