Gold

Once again, both gold and silver prices are at a crossroad. On a technical basis, they are at a critical support level. Whether or not prices at these defined support levels hold will be a great indicator as to the next big move in gold and silver pricing.

“Come writers and critics who prophesize with your pen, and keep your eyes wide, the chance won’t come again. And don’t speak too soon for the wheel’s still in spin, and there’s no telling who that it’s namin’.”

Bob Dylan

Years from now, historians will put into perspective the transitional changes that began a mere twenty-four days ago. They will have the luxury of hindsight, with knowledge of the outcome. They will be able to see the cause-and-effect pattern that resulted from the policies, which were implemented by an untested businessman, who rose to the most powerful position on earth.

Ten – Ten, the two critical numbers gold traders are looking at closely.

Since the presidential election was held on November 8, we have seen a dramatic decline in gold prices. Downside pressure continues to dominate precious metals pricing as a whole, resulting in gold prices now moving to a ten month low.

Today the Federal Reserve released the Beige Book, a collection of antidotes from business contacts in the Fed’s 12 regional districts. Published eight times a year, the Beige Book is created to aid Federal Reserve members. Most significant from today’s report is the discussion of an economy that is continuing to grow.

Today traders witnessed a return of the dynamic rally in US equities which began just following the presidential election on November 8. Although today’s advance did not take the Dow Jones industrial average or the Standard & Poor’s 500 to new all-time highs, they did signal a strong potential for a continuation of their current rally.

For the first time since the presidential elections were held on November 8 we are seeing a distinct reversal of the trends which developed immediately following the election results.

For the last two weeks, we have seen US equities rally on multiple occasions and close at a new all-time record high.

As I awoke just following a joyful and quiet Thanksgiving holiday, I quickly realized that we are still under the effect of our presidential election which occurred roughly 3 weeks ago, and that key reversals and trends that developed immediately following the presidential election on November 8 continue to guide and influence market direction.

Market trends which developed immediately following the election of Donald Trump as the 45^th president of the United States not only continue, but seem to be strengthening.

Whereas the most recent “Brexit” referendum vote had a knee-jerk reaction which lasted roughly 3 days, our most recent presidential election’s knee-jerk reaction lasted a little over 12 hours.

Inasmuch as there is true uncertainty as a new US president takes office on January 20, the “Tru-ally” affect (Trump Rally) continues to add short-term optimism to US equities markets.