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Traders are conserving cash as they digest first presidential debate: RBC Wealth Management

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(Kitco News) Volatility continues to dominate the markets as traders digest the first U.S. presidential debate from Tuesday evening, says RBC Wealth Management managing director George Gero. “After debate, open interest gold futures 562,672 as sellers and buyers met … silver 157,320 and silver-gold ratio 79.2 up. For now, metals pullback as traders conserve cash,” Gero writes. Eyes are on the U.S. jobs data, scheduled for release on Friday, and more election headlines. “For now, large fiscal deficits to grow inflation still benign and Friday more jobs numbers not yet reflecting airlines, Shell and Disney jobs losses are headwinds this week,” Gero notes. “Expect volatility to continue through elections as Brexit, global economic worries and U.S.-China tensions increase and pandemics numbers could delay recovery.” Gold could see additional demand come from investors seeking shelter from their local currencies deprecating, Gero adds. “Still can’t count out gold, looking ahead $1,900 and $27.00 silver as ETF also adding gold and silver as longer term buyers persist.”

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