Does the election effect gold, silver and platinum?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Today is Election Day in the United States and voter turnout is expected to be record-setting. The big question: will the results of the Presidential Election affect the price of metals? The simple answer is No.
Markets have already picked their winner based on the price action and expectations. Gold, silver and platinum have been in downtrends for months as the markets were debating the next president. Over the past few days, President Trump has made dramatic strides; markets are now predicting a solid win for the incumbent.
Through all the rhetoric and smears, the markets are clearly saying the winner will be Trump. Through all the voting process, the metals have remained in a downtrend that has not changed. However, the opinions of the election have. Despite the recent rally in metals, the trend remains lower, we remain short and nothing has changed other than some of the news items.
This proves two things; when trading the news, you are destined to lose and price action trumps all. Whoever is declared the eventual winner gold, silver and platinum will trend one way or the other. For now, that is down and there is no evidence to change that.
Bottom line: Price action tells all and more often than not understands and incorporates all of the information. Traders and investors spend too much time trying to guess or express their opinions. At the same time, markets are benign to the eventual news, having already declared where they stand.
The market is telling us that it is bearish because we have made lower highs and lower lows for months. Clearly, sellers are overwhelming the buyers and until that changes- the current downtrends will remain in force.
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Saturday November 7th at Noon EDT