From the Trading Desk
The night of Trump’s victory in the US presidential election had the immediate feeling of Brexit all over again… “smart money” and the liberal media had, yet again, completely underestimated a political movement and world markets were turned upside down trying to make sense of an entirely unexpected (although it shouldn’t have been) scenario. Just like with Brexit, market participants immediately flocked to the safe haven allure of gold and it shot up $65 as it became clear that Trump would win. Unlike with the British referendum though, gold’s reaction was short lived. The market’s perception of Trump’s victory reversed drastically with the USD surging, equities sky rocketing from major intra-night losses, and gold falling off a cliff. The USD index and US equities have been on a tear higher since November 8th while gold has shed over $100. Volume on the Comex in gold has been enormous, but steadily declining since the election, and it appears that gold is looking to consolidate around these lower levels. Support is coming in at $1,200 while resistance is at $1,250.
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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.