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Gold Price News: Gold Edges Lower as Markets Eye US Election
Gold prices were marginally lower on Wednesday morning, with the financial markets watching out for the outcome of the US Presidential election.
Prices edged up to an intra-day high of $2,750 an ounce on Tuesday, compared with around $2,736 an ounce in late trades on Monday. However, prices fell to around $2,730 an ounce in early deals on Wednesday.
Overall, gold prices had been relatively steady in recent days, having pulled back from all-time highs of $2,792 an ounce on October 30th.
Gold KAU/USD 1-hourly Kinesis Exchange
The markets had been waiting for the outcome of Tuesday’s US Presidential election, with polls showing Democratic nominee Kamala Harris holding a thin lead over her Republican counterpart Donald Trump in the final days leading up to the vote.
Gold prices had appeared to make gains earlier on the back of expectations of a Trump win, due to a perception of increased trade tariffs and other protectionist policies under that outcome, which could support safe-haven assets.
As of Wednesday morning, voting results showed that Trump had made significant gains, and was already making victory speeches, albeit with votes still being counted in some states. Read More
Silver Price News: Silver Dips As Markets Watch US Election
Silver prices fell on Wednesday morning, as the markets kept an eye on the US election results.
Prices rose to an intraday high of $32.96 an ounce on Tuesday, compared with around $32.43 an ounce in late deals on Monday. Prices came back off their earlier highs to trade at $32.63 an ounce later in the session but fell further on Wednesday morning to as low as $31.52 an ounce.
Silver KAG/USD 1-hourly Kinesis Exchange
Attention was focused on Tuesday’s US presidential election, which appeared to prompt a cautious attitude as the market awaited the outcome, along with Thursday’s US Fed meeting in which the central bank is widely expected to cut interest rates by a further 25 basis points. These risk factors may have combined to create a rather subdued atmosphere in the precious metals markets at the start of the week.
Technical analysis:
From a technical perspective, silver prices were trading just below their 20-day moving average, which stood at $32.75 an ounce as of Tuesday. Should prices lose further ground, a degree of support may be encountered due to rising oblique major support at $31.94 an ounce, which is the lower boundary of a rising trend channel seen since early August.
A Fibonacci analysis based on the August to October bullish move for silver indicates potential further support at the 38.2% retracement level at $31.64 an ounce. The 14-day Relative Strength Index is considered neutral at 51.3 as of Tuesday, indicating that silver is neither overbought nor oversold. In addition, the more stable price performance since November 1st may be a sign that silver has finished a short-term downtrend and is looking for new direction. Read More
Trump’s America-First policy drives US dollar and bond yields higher, pushing gold prices down 3%, silver prices down 5%
After a tight race, former President Donald Trump will become the 47th President of the U.S., and his America-first philosophy is driving the U.S. dollar and bond yields higher, which is taking a significant toll on gold and silver.
Spot gold prices are currently down 3% as the North American trading session kicks off, last trading at $2,657.60 an ounce. At the same time, silver is down 5% on the day, last trading at $30.95 an ounce.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said that while the selloff in gold and silver is dramatic, it’s not surprising given how far the precious metals have run in recent weeks.
“Today’s strong dollar rally is the main reason why gold is struggling, to the extent that it broke support levels, which then triggered some additional long liquidation,” he said.
At the same time, Hansen noted that falling copper prices are also taking their toll on silver.
However, Hansen also added that gold and silver have been long overdue for a correction, and this selloff could be seen as a new buying opportunity. He pointed out that despite the rally in the U.S. dollar, the outlook for the U.S. economy and government spending hasn’t changed. Read More
Decisive election outcome and dollar strength move gold sharply lower
Gold prices plummeted in dramatic fashion today following Donald Trump's landslide victory in the presidential election, securing his position as the 47th President of the United States. The outcome marks an extraordinary comeback for the former president, who faced numerous challenges including legal battles, felony convictions, and two reported assassination attempts.
Image Source: Kitco News
The financial markets responded to the election results with notable vigor, though not uniformly across asset classes. While US equities staged a strong rally and Bitcoin surged to a fresh all-time record above $75,000 on a remarkable 10% daily advance, gold took a decidedly different path. By 3:00 PM ET, the most active December gold futures contract had fallen sharply to $2,675, representing a substantial decline of $78.40, or 2.85%.
Dollar strength emerged as a significant factor in gold's retreat, with the dollar index climbing 1.58% to reach 105.123. However, the selling pressure in gold extended beyond mere currency effects. Even after accounting for the stronger dollar, gold showed an additional decline of 1.27%, suggesting widespread selling interest in the precious metal. Read More
Gold prices slide amid dollar surge after Trump win, Fed now brings further downside risk – FX Empire’s Hyerczyk
Gold has sold off dramatically after Donald Trump’s projected victory drove the U.S. dollar to a four-month-high, and the yellow metal now faces a critical test of support with Thursday’s Fed rate decision adding further downside risk, according to analyst James Hyerczyk at FX Empire.
“Gold prices are falling sharply on Wednesday, as traders lock in profits amid a stronger U.S. dollar and surging Treasury yields following Donald Trump’s projected return to the White House,” Hyerczyk wrote. “The sell-off in gold pushed prices through a key technical support level of $2,708.76, shifting the trend downward and further pressured the metal by breaking below the $2,697.28 pivot level.”
“Gold now faces a critical test near the 50-day moving average at $2,636.66 as markets await the Federal Reserve’s policy announcement on Thursday,” he warned.
Hyerczyk said gold is facing significant pressure from a strengthening USD. “Fueled by Trump’s projected victory and Republican gains in Congress, the greenback appreciated 1.4%, while the ICE U.S. Dollar Index marked its strongest level since July,” he noted. “The dollar also saw notable gains against the Mexican peso, Swiss franc, and other major currencies, making gold more expensive for international buyers and reducing its appeal as a non-yielding asset.” Read More
China to issue $2B dollar bonds in Saudi Arabia as de-dollarization efforts accelerate
The U.S. dollar surged to its highest level since July following Donald Trump’s re-election as his America-first philosophy is expected to support the USD, but the trend of de-dollarization by non-western countries continues, with China leading the charge.
According to a statement released by China’s Ministry of Finance, they plan to sell $2 billion in dollar-denominated bonds in Saudi Arabia next week, once the state council’s approval has been granted.
“With the approval of the State Council, the Ministry of Finance will issue US dollar sovereign bonds in Riyadh on the week of November 11, 2024, with a scale not exceeding US$2 billion,” a translation of the statement read. “The specific issuance arrangements will be announced separately before the issuance.”
This marks a notable change in the recent status quo, as it has been three years since the last time China issued dollar bonds in Saudi Arabia. The move is expected to help the Chinese government open its financial sector to global investors.
It also highlights the strengthening relationship between China and Saudi Arabia, with analysts saying the selection of Saudi Arabia as China’s preferred country for debt issuance in dollar bonds demonstrates their commitment to strengthening multifaceted alliances. Read More
Trump’s victory spurs Bitcoin surge to $76k, stock rally while gold and silver tumble
Traders embraced a risk-on sentiment following Donald Trump’s re-election as president, with Bitcoin and the major stock indices rallying to new record highs, while precious metals experienced a sell-off.
“Following the election results, we've observed a noticeable uptick in risk assets ranging from cryptocurrencies to equities,” said analysts at Secure Digital Markets. “Notably, Bitcoin surged to a new record high of $75,500, spurred by market anticipation of a regulatory easing under the new administration.”
“The cryptocurrency sector experienced a [9.5%] increase in market capitalization, with particular outperformance noted in DOGE and other meme coins,” they noted, adding that crypto-related stocks also saw significant gains.
“This optimism is largely fueled by Trump's campaign portrayal as a pro-crypto candidate, which suggests a potential easing of U.S. regulations impacting the crypto space,” they said. “The political climate in the U.S. appears increasingly favorable towards cryptocurrencies, potentially speeding up their adoption into the mainstream.”
At the closing bell, the S&P, Dow, and Nasdaq all finished well into the green, up 2.53%, 3.57%, and 2.95%, respectively.
It was the opposite story for precious metals, however, with both gold and silver trading down more than 3% at times during the session. At the time of writing, spot gold trades at $2,659.90/oz for a decline of 3.05% on the session, while spot silver is down 4.55% and trades at $31.13/oz.
The pullback in precious metals comes as the DXY and the U.S. 10-year Treasury yield rallied, but the pressure eased in the afternoon after they pulled back from their daily highs. Read More
Gold, silver hammered by surging USDX, bond yields
Gold and silver prices are strongly lower and are at three-week lows in midday U.S. trading Wednesday. A surprisingly decisive win by Republican U.S. presidential candidate Donald Trump has produced several bearish elements that are impacting the precious metals markets today. December gold was last down $65.20 at $2,685.00 and December silver was down $1.32 at $31.43.
The U.S. presidential race was not as close as expected and the process was not disputed. No civil unrest has occurred because of the election results. This prompted the unwinding of safe-haven, long-gold trades. A stronger U.S. dollar index and higher U.S. Treasury yields today are also bearish for gold.
Technically, December gold bulls still have the overall near-term technical advantage but faded badly today. They need to stop the bleeding fast to avoid serious near-term technical damage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,801.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the October low of $2,618.80. First resistance is seen at $2,700.00 and then at $2,708.70. First support is seen at today’s low of $2,660.70 and then at $2,650.00. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
December silver futures bulls still have the overall near-term technical advantage but have faded badly. A three-month-old uptrend on the daily bar chart is in serious jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at today’s low of $3.94 and then at the October low of $30.345. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Can the U.S. survive its debt? The 'doom loop' trap, gold's & dollar's future under Trump – Stephanie Pomboy
President Donald Trump's re-election victory ignited a surge in the stock market and propelled Bitcoin to new record highs, but Stephanie Pomboy, founder of MacroMavens, warned that questions remain about the long-term impact on the U.S. economy, particularly in light of the nation's mounting debt levels.
In the immediate aftermath of the election, investors swiftly moved into trades aligning with Trump's policies on tariffs, taxes, government borrowing, and cryptocurrencies.
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite hit new record highs on Wednesday, with the former surging more than 1,500 points. The last time the Dow jumped more than 1,000 points in a single day was in November 2022.
Bitcoin, buoyed by Trump's campaign promises to make the U.S. the "crypto capital of the planet" and establish a "strategic Bitcoin reserve," surged to new all-time highs, pushing above $76,000.
However, concerns about the U.S. economic situation should not be forgotten, given the nation's nearly $36 trillion federal debt level.
"We have got corporations that are massively leveraged," Pomboy told Jeremy Szafron, Anchor at Kitco News. "You're going to have a problem for a lot of the lower echelon of corporate America that already can't service its debts." Watch the podacst
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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