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
The Rediscovery of Men
20:14according
and now bernie has a brand new house. i smelled that the fix was in when he said he was running against filthy hillery. then at the perfect moment...
The Rediscovery of Men
19:01according
i suspect that georgie S and his goons will crash the coin and try to starve our guts and spirits with fears we havnt felt perhaps ever. it will be...
The Deepening Deep State
18:47according
james this is a nice piece of writing. good to see you moving to the Right. its probably safer there for awhile at least.
Jack Kemp's Gold Standard Act Of...
05 Decsam_site
We were on a disastrous 40% Gold Standard from 1914 thru 1944 and this half-assed 40% standard enabled the globalists to create two world wars...
Dollar Reappraisal : Gold Vanish...
04 Decsam_site
Enjoyed the gold history lesson of 1965. Palyi's quote "where the Welfare State is on the march, the Police State is not far behind" is prophetic....
Indian ‘Gold Ban’ a Portent of M...
03 Decsam_site-1
You believe like Brandon Smith, that Trump was allowed to win or is a secret globalist puppet that will be "fingered as the scapegoat for this...
Lawrie Williams: Major gold pric...
02 Decian15171
Hmm. the first signs of the long talked about disconnect between paper and physical?
Trump Makes The US Stock Market ...
02 DecThe Recusant
I'm forever blowing bubbles, Pretty bubbles in the air, They fly so high, Nearly reach the sky, Then like my dreams They fade a...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS