You’ve Got E-Mail – Gold and Equities Sure Did | The Gold Forecast

You’ve Got E-Mail – Gold and Equities Sure Did

November 7, 2016 - 5:14pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
Thursday, October 13th, we sent out a trade alert recommending that our subscribers initiate a long position in gold. Last week on Wednesday we moved our current protective stop to below 1288 (1285). Today we were stopped out as gold prices dropped.
Long gold @1259.60, stop hit @ 1285 for a $25.00 profit ($2500 per contract)
Gold Market Forecast

Based upon statements made by the head of the FBI yesterday, the precious metals markets took the cue of buying on rumor and selling on fact. As such we saw the precious metals complex as a whole decline strongly, with gold leading the way in terms of greatest percentage drawdown when compared to silver.

I’m not convinced the fireworks are over, and we could certainly see a continuation of today’s trend should Hillary Clinton be elected as the first woman president of the United States. On the other hand, although it is a extreme long shot, if Donald Trump does win the election tomorrow we could see much of the premium that fell out of gold today quickly return and equities give up the majority of their gains.

Trending Markets Forecast

Statements made by the head of the FBI yesterday were absolutely perceived as a clear message that all systems are go for a Clinton presidential win tomorrow. As such, US equities staged a dramatic relief rally moving the Dow Jones industrial average dramatically higher. The NASDAQ outperformed the Standard & Poor’s 500, closing up almost 2 ½% on the day.

The Standard & Poor’s 500 closed above its 50-day moving average, which is significant.

The US dollar surged in value, gaining about 7/10ths of a percent on the day, putting dramatic pressure on the precious metals complex.

Sentiment Indicator: