The famous New Year's ball in Times Square has dropped, and that means it's officially 2021 -- even if there were no crowds at the iconic triangular intersection of Broadway and Seventh Avenue in Manhattan to usher in the new year. Gold prices certainly rang in the dawning of 2021 on a high note, with the yellow precious metal making a run from around $1,890 on New Year's Eve up through the low $1,900s yesterday to reach $1,950 this morning.
Much has been happening on the economic front over the first few days of the new year, including the issuance of stimulus checks to most Americans and the Dow Jones Industrial maintaining its pace above 30,000 points to kick off 2021. However, today all eyes are on the state of Georgia, where senatorial runoff elections could decide the fate of the next two years of the presidency of Joseph Biden, which begins on January 20, 2021.
With the United States House of Representatives maintaining a much smaller Democratic majority this session than the previous, the United States Senate could also tilt blue if both Democrats up for election in Georgia win. And with President-Elect Biden serving as a Democrat, his socioeconomic policies stand a much greater chance of being approved if both houses of congress have Democrat majorities.
If the U.S. Senate keeps its slim Republican majority, there could be more stalemate on Capitol Hill in the next years ahead, stymieing investors and others awaiting a clearer picture of where the domestic economy may go in the foreseeable future. Expect to see gold prices react to the news coming from Georgia over the next few days.