Dominating the headlines today globally will be news that President Donald Trump has been impeached for a second time. This coupled with the threat of further demonstrations is bound to be a distraction for the new administration and could impact or delay the next round of stimulus for the US. With global markets being fueled by loose monetary policy and massive Covid-19 financial stimulus, these developments are sure to be felt beyond the borders of the United States.
The recession/reflation see-saw effect for gold and silver prices since the coronavirus-induced lockdowns have sent prices on a roller coaster. Both gold and silver prices plummeted the first half of March 2020 when government mandated lockdowns went into effect and caused recessionary economic impacts, then they rallied on the back of massive fiscal and monetary stimulus into new highs; an all-time high for gold and a seven year high for silver (both in August 2020).