From the Trading Desk
The most wild and unprecedented race in the history of US presidential elections finally comes to an end tonight. The election was thrown into further chaos over the weekend when the FBI announced that it would no longer pursue a case against Hillary Clinton. The news caused gold to gap $10 lower on the Sunday open from its closing price on Friday. The combination of most polls indicating a Clinton win plus the FBI lifting its investigation into the Democratic candidate has translated into gold trending lower for the past two days. The market has already indicated that it interprets a Clinton victory as bearish for gold while Trump winning the election would be bullish. Given that the market is already pricing in a Clinton victory, I think a win for her has limited downside for gold. However, a Trump surprise may lead to a gold rally akin to the one seen when the Brexit vote caught the market completely off guard. Technical levels generally become irrelevant in the immediate wake of major political and/or economic events such as a US presidential election. We’ll have to see where the dust settles tomorrow before attempting to determine key levels to keep an eye on in the short term. Good luck tonight!
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.