Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

US election: now for the hangover

IMG Auteur
 
Published : November 08th, 2012
266 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

 

 

 

 

At long last, it’s all over. Residents of Ohio, New Hampshire, Florida and other swing states can at last watch TV again without being bombarded with political advertisements. Precious metals and commodities in general have reacted positively to Obama’s re-election, while the dollar has sold off.

Gold and silver’s biggest move of the 24 hours actually occurred yesterday afternoon, however, prior to the result: the metal swiftly moving from around $1,690 to $1,715 in a matter of minutes, while silver gained close to a whole dollar per ounce during the same period. Perhaps the “longs” had a premonition that Obama would win (thus cementing weak dollar policies for another four years). A better interpretation is that fundamentals for precious metals are strong enough that it wouldn’t really have mattered who won, so physical buyers leapt at the fleeting chance to buy at under $1,700.

The Dollar Index has actually held up relatively well over the course of Obama’s first term (better than during George W. Bush’s first term from 2001-2005). A key test now awaits dollar bulls though, in the form of the fiscal cliff: shorthand, as the Telegraph informs us, for the $607 billion of tax increases and spending cuts due to take effect from January. The Congressional Budget Office has warned that this will push the economy back into recession in a matter of months – if all the cuts and tax rises are enacted.

This is partly why the Federal Reserve will have to persist with its efforts to devalue the dollar. Another key reason is explored in the video below (hat-tip, JSMineSet.com).




 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Leaked Police Report: There Are 23 Muslim-Controlled “No Go Zones” ...
25 Junkevthorne1
I do not know how anyone could take an article like this seriously. It is garbage of the worst kind. 'Anonymous sources' 'unidentified leaks' - not...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
22 JunDavid C.2
Yes Mish, but bitcoin and the wealth and debt burdens of the world are fully backed by electrons which are very light. Unlike that 68 ft glob of m...
Bitcoin in Perspective: Bill Gates Worth More, Gold 200 Times More
23 JunDynoman0
Valuable potential is what's currently offered by digital currencies. It makes absolute sense to have a global digital economy based upon borderles...
Absent Without Leave
21 JunS W.
Bail ins for sure. It was agreed at the G20 in Brisbane. You are not really a share holder. You are an unsecured creditor to the bank a...
Absent Without Leave
19 JunJ.3
Perhaps all the international shenanigans are the smoke and mirrors intended to obfuscate the view of the looming financial catastrophe. When the ...
Gold Price Cuts Post-UK Election Loss, ETF Investors Sell, Nasdaq D...
16 JunSam Maher
"the SPDR Gold Trust (NYSEArca:GLD) – saw its sharpest liquidation since March in the week-ending Thursday, with shareholders cutting the fund's si...
Things To Come
13 Junkevthorne3
If voting for 'parties' actually made a difference they would have not legalised it. Since 1914, it's been the supply of currency that has governed...
Things To Come
12 Jun Roygbiv0
And JHK ruined your life because he then voted for Obamba ? For Jim C.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS