Gold Silver Reports — WHO’S GOLD VOTING FOR THIS ELECTION? — “Whom is gold voting for?“ wonders CNBC inhalf properEnglish.“Whom,“ of course, being The Donald or Herself.
“Some market participants say that a surprise Trump vic tory will cause considerable market anxiety,“ says the network, “leading safe havens like gold to surge.
“Others,“ it counters, “say that Trump’s antipathy for stimulative monetary policies will mean more rate hikes down the line, spiking the dollar and consequently hurting gold prices.“
Citigroup thinks gold yanks the lever for Trump this fall: “We expect a Trump win would bring out higher volatility in gold and forex, which in turn should lead to higher volumes in other precious metals.“
But that’s not the half of it, according to John Ing, president and CEO of Maison Placements Canada. He predicts gold will spike $100 overnight if Trump wins. He compares the upcoming election to Brexit, when the “smart money“ got taken for a ride: “The smart money is expecting a Clinton victory . The smart money expected the U.K. to remain, and of course, that smart money looks pretty dumb.“
Gold’s taking a riotous shellacking today -down $40! Immediate expla nation: Cleveland Fed President Loretta Mester scared the horses yesterday with talk of a rate hike this November. If the data come in as she expects, she honked, the case for a move on Nov 2 “would remain compelling.“
Just so. But here’s Jim Rickard’s take: bilge water!: “You can safely forget about a November rate increase. That Fed meeting is just days before the election, and the Fed will keep their heads down and not do anything that might have political ramifications.“
Naeem Aslam, chief market ana lyst at ThinkMarkets, isn’t buying her gabble, either: “The sell-off that we are seeing for gold is mainly due to the reason that some Fed members have creat ed noise again that November meeting could be live when it comes to the interest rate.
Although it sounds ex tremely bi zarre because we also have the US election in that particular month, and I do not see the Fed combining the two risky events together.“ A good opportunity to “buy the dip“? Could be, according to Jim: “I don’t like the `buy the dips’ mentality for stocks, but it does offer opportuni ties for gold buyers. If you’re not fully allocated to gold (I recommend 10% of investable assets), and you see a drawdown in the price, that repre sents a good entry point.“ – Neal Bhai Reports