[View this email in your browser]( [Facebook]( [Twitter]( [Forward]( [Kitco Metals]( Editor's Picks [@neils_C]( [Gold]( investors are ending another frustrated week as the precious metal canât seem to get through $1,800 an ounce. In recognition of the Kentucky Derby, which starts May 1, I thought this horse analogy is appropriate: the gold market is balking by the gate, it's a horse that just doesn't want to run. What makes the price action so exasperating is that the conditions are perfect for a breakout rally. This week alone, [President Joe Biden, in his first address to Congress continued push his nearly $2 trillion infrastructure spending plan.]( At the same time he also introduced a new $1.8 trillion plan to support families and children. The plan includes universal childcare and two free years at a community college. Biden described his proposals as a once-in-a-lifetime investment opportunity. "From my perspective, doing nothing is not an option," he said. While the idea to build new roads, improve internet service for Americans and lifting children out of poverty are noble tasks, this spending will lead to bigger debts and deficits. Biden said that he would pay for his programs by raising corporate taxes and raising taxes on the wealthy to 39.6%. Economists have said that raising taxes could weigh on the U.S. dollar, which in turn would remove a strong headwind from the gold market. So the U.S. dollar looks to weaken as government spending continues to rise and adding to this perfect storm is the fact that interest rates are not going anywhere anytime soon. Before Bidenâs address to Congress, Federal Reserve Chair Jerome Powell said he is nowhere near ready to tighten monetary policy. "It's not time to start talking about tapering. We'll let the public know well in advance. It will take some time before we see substantial further progress," [Powell told reporters on Wednesday.]( had one great jobs report. It is not enough to start talking about tapering. We'll need to see more data." Finally, although the U.S. economic recovery is building a full head of steam, it is coming at a significant cost. Inflation is on the rise and for many is a looming threat to purchasing power. So to recap, deficits are rising, the U.S. dollar is expected to weaken, inflation is rising and interest rates will remain low. Gold is a thoroughbred in this market but it just canât seem to find its legs. I just wanted to end with a quote from one analyst who I talk to frequently: âGold is doing what it does best⦠frustrate gold investors.â That is it for this week. Have a great weekend Neils C. Related Stories ['We are sitting on economic cliff': Gold price will be 'well north of $2,000 this year' - ex-JP Morgan MD]( are sitting on economic cliff': Gold price will be 'well north of $2,000 this year' - ex-JP Morgan MD]( [When is silver's time to shine? Lobo Tiggre]( is silver's time to shine? Lobo Tiggre]( ['It's just zeros and ones at the end of the day' - David Garofalo on why gold is better than bitcoin]( just zeros and ones at the end of the day' - David Garofalo on why gold is better than bitcoin]( [When will the Fed raise rates? Phil Streible on how long stocks can stay elevated]( will the Fed raise rates? Phil Streible on how long stocks can stay elevated]( [Kitco News]( [Jewelry and bullion sales prop up gold demand as investors flee gold ETFs - WGC]( [Russia accelerates its de-dollarization policy, chooses to settle exports in euro over dollar]( [Gold price won't push above $1,900 until 2022 - Murenbeeld & Co]( [Palladium on its way to $3,000 as supply-demand imbalance grows - analysts]( [Gold price is starting to find its 'mojo,' should test $1,900 before year-end, says TD Securities]( [Commodities are surging: can this last or is it 'transitory' spike as Fed says?]( [Copper prices at decade highs headed for all-time highs - analysts]( [It's too early to call bitcoin the new gold, says Goldman Sachs]( [Gold looks good as Biden pushes trillions in new infrastructure, education spending in Address to Congress - Analyst]( [Batman]( [Gold bulls frustrated by disappointing price action and are taking a break]( [Gold Live App]( [Kitco Mining]( [Mining sector getting back into the rhythm in Q1; expect healthy margins even as prices dropped - Sprott's Groh](
[Mining sector getting back into the rhythm in Q1; expect healthy margins even as prices dropped - Sprott's Groh]( [Newmont reports solid earnings as production drops 2% in first quarter]( [Yamana touts outstanding Canadian Malartic performance in Q1, ups dividend]( [Canadian mines helped Alamos Gold to beat Q1 production guidance]( [Kitco Gold Chart]( [Kitco Gold Chart]( For Pete's Sake Peter Hug Director, Global Trading
phug@kitco.com [Kitco mourning the loss of Peter Hug]( Technically Speaking Jim Wyckoff Market Analyst and Columnist
jwyckoff@kitco.com [Gold, silver bulls lose their near-term technical advantage]( Promotion [VaultChain]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco.
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