On the day of President Biden’s inauguration, gold rallied. Analysts see this as the start of a new bull run for the precious metal, just like we saw four years ago:

“Much of today’s rally is just investors believing that you are going to see the Biden administration work nicely with the Treasury in providing a significant amount of stimulus in the first 100 days,” said OANDA senior market analyst Edward Moya. “The current virus situation is really going to demand much more support for the economy.”

What does more stimulus measures mean for the gold price?

And that anticipation was spot on: the Biden administration is pushing a $1.9 trillion measure that would include expanded stimulus payments, unemployment insurance, and aid to state and local governments among other initiatives to help struggling Americans. That means the Fed’s money printing will continue, which is positive news for gold investors.

Add to that the fact that Treasury Secretary Janet Yellen has now been confirmed—the same Yellen who have urged lawmakers to “act big.” Now that she’s been confirmed, we’re likely to see further measures to keep the economy and stock markets afloat.

As gold went up, the dollar index went down—another positive developments seen from the perspective of gold investing:

Are we seeing another gold rally?

Some analysts see these moves as a start of another rally for gold, which could take the gold spot price to the $2,000/oz level and beyond.

“There is going to be growing expectations that this is possibly another bullish phase. You are going to initially see $1,890–$1,900 level as immediate resistance. The $1,900 level is likely to be short-term resistance this week, and if the rally continues to see strong support, I wouldn’t be surprised to see gold at $1,950 by the middle of next month,” Moya said.

There is confidence among investors, analysts, and Washington alike that Biden is going to try to work with Republicans to pass the $1.9 trillion stimulus package. “As long as we at least get one trillion in stimulus, it is going to be enough to keep the gold rally going,” Moya added.

For the many struggling Americans, a bipartisan stimulus package will be a welcome help in a time that’s otherwise characterized by significant uncertainties. The vaccine rollout is encountering hiccups, case numbers are growing, and new variants are being discovered, raising the concern that the mutations are resistant to antibody neutralization, which means vaccines might be unable to protect from re-infection,

Should that be the case, expectations are that we will be seeing lockdowns in higher numbers and for a lot longer. That would further worsen the economy and increase the pressure on Washington to add more stimulus, which means higher gold prices.