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Gold prices surged past $4,000 an ounce, with spot gold gaining nearly 2% to trade at $4,137.49 at the time of writing.
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Spot silver prices were up 1.72% to trade at $53.11 an ounce.
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According to The Kobeissi Letter, gold and silver added a combined $1 trillion in market capitalization on Wednesday.
The precious metals trade caught a leg up after the Democrats swept both chambers of Congress on Wednesday amid improved investor confidence.
Gold prices surged past $4,000 an ounce, with spot gold gaining nearly 2% to trade at $4,137.49 at the time of writing. Meanwhile, spot silver prices were up 1.72% to trade at $53.11 an ounce.
Are Gold, Silver Still Worth Buying?
Many market experts believe that this is just the beginning for the precious metals trade, which is likely to edge higher in a Democratic-led Congress.
Economist Peter Schiff said in a post on X, “After being up over $130 today, gold is up another $55 tonight, trading above $4,100. It’s possible it may never trade below $4,000 again. Silver is up another 40 cents, trading above $52.50. It may never trade below $50 again. Just in case, buy both now.”
As per market commentator The Kobeissi Letter, gold and silver have added a combined value of over $1 trillion in market capitalization on Wednesday.
Economist Steve Hanke also backed buying the precious metals, noting the surge in prices of gold and silver in a post on X.
Ole Hansen, veteran commodities expert and Head of Commodity Strategy for Saxo Bank, said in a post on X that gold and silver have rallied, supported by a softer dollar and lower Treasury yields amid expectations that a Democrat-controlled Congress could constrain Trump’s fiscal agenda and limit further, increasingly unaffordable fiscal expansion.
Long-term Treasury yields eased late Wednesday, with the 10-year U.S. Treasury yield trading at 4.839%, while the 30-year yield was at 5.231%.
What Is Retail Saying About GLD, SLV?
The SPDR Gold Shares ETF (GLD) was up more than 1% at the time of writing. On Stocktwits, retail sentiment around GLD flipped from ‘neutral’ to ‘bullish’ over 24 hours.
Meanwhile, the iShares Silver Trust (SLV) was up 1.4% at the time of writing, with retail sentiment in the ‘extremely bullish’ territory.
One user said, “Gold was able to hold the $3,900 for the most part and made an impressive rebound back to $4,140. The gold shares similar reasons why silver rallied (see below). I like the chance for gold to recover back to $4,700+ and silver to $65+ potentially by EOY rally.”
