It is the first day and week of trading of 2021, and silver (2.95%) and gold (1.34%) are beginning the year on the front foot. Sentiment has been mixed on January 4 as the Nikkei 225 lost 0.68% after various suggestions and reports that Japan may go into a state of emergency due to the surge in COVID-19 infections.
Nonetheless, China’s Shanghai Composite pushed 0.86% higher, and Australias ASX rose 1.47%. Looking at the major news, it is emerging that a group of senators led by Republican Ted Cruz want a delay and a 10-day investigation into wrongdoing allegations linked to the election.
The market also was introduced to the December report for the Chinese Caixin manufacturing PMI index. This reading slightly missed expectations of 54.8 to print at 53.0. However, it was the 8th consecutive month of expansion. In other places, Australia’s manufacturing PMI for December also missed the analyst consensus reading of 56 to report at 55.7.
In the United Kingdom, Prime Minister Boris Johnson said that the UK may have to come to terms with the fact that more severe restrictions may have to be implemented to deal with the increasing COVID-19 cases. This news comes in the same week that the Oxford/AstraZeneca vaccine is getting released to the most vulnerable individuals in the country.
On its part, the US is said to be considering giving some people half the dose of the Moderna COVID-19 vaccine. This vaccine is delivered in two stages but the move might be considered to make rollout seamless and more efficient.
Ahead of this week’s OPEC meeting, the usual comments have come up. This time around, OPEC Secretary-General Barkindo said that the group sees a lot of downside risk for oil markets in the first half of this year.
Bitcoin’s surge over the weekend was seen by many as a threat to gold’s haven status. However, the precious metal markets seem intact heading into 2021. How high will gold and silver go?