Home Featured Gold Solidly Up from Down from Overnight high on Trump Win

Gold Solidly Up from Down from Overnight high on Trump Win

Gold Solidly Up from Down from Overnight high on Trump Win
Gold investment concept. Illustration of growing bar chart.

Full Article: Gold Solidly Up from Down from Overnight high on Trump Win

By: Jim Wyckoff

(Kitco News) – Gold prices are solidly higher and have hit a six-week high in early U.S. trading Wednesday, in the wake of a stunning U.S. presidency win by Donald Trump. His unexpected victory has roiled the world marketplace and that’s bullish for safe-haven gold. December Comex gold was last up $25.70 an ounce at $1,300.00. December Comex silver was last up $0.379 at $18.735 an ounce.

The polls were wrong and the world marketplace was “wrong-footed” as  Trump won the U.S. presidential election over Hillary Clinton. Global financial markets and gold started sensing trouble with their previous thinking when early election results starting rolling in Tuesday evening. It’s not often that the general sense of the marketplace is wrong, but it happened overnight. And those who were wondering about a repeat of the U.K. Brexit vote in June were spot on. The U.K. voted to exit the European Union despite polls showing otherwise.

Gold prices pushed above $1,300.00 an ounce and hit a high of $1,338.30 in December futures overnight, but have backed well down from that level. World stock markets sold off sharply and U.S. stock indexes are pointing toward solidly lower openings when the New York day session begins. U.S. stock indexes are trading well off their lows seen overnight, however.

The U.S. Treasury bond and note markets are trading with steep losses in prices and have hit multi-month lows, after trading sharply higher late Tuesday evening. The key “outside markets” find the U.S. dollar index now trading slightly higher and Nymex crude oil futures prices trading near steady.

The Mexican peso hit a record low against the U.S. dollar Wednesday.

Asian market participants and big businesses in Asia were spooked by the Trump victory, as the president-elect has said U.S. trade deals with Asian countries are not good for the U.S. Asian stock markets were lower Wednesday, with Japan’s Nikkei stock index sharply lower.

How long will the increased markets volatility last? Likely not long. Markets are quick to factor in unexpected events and it won’t be long until they return to more normal price action, including the precious metals.

Many are now speculating the Federal Reserve now will not raise interest rates in December, due to wanting to wait to see what Trump and the Republican-controlled Congress do regarding their new policies.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls have the overall near-term technical advantage and have gained momentum at mid-week. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the overnight high of $1,338.30. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at the overnight low of $1,268.10. First resistance is seen at $1,309.30 and then at $1,320.00. First support is seen at $1,290.00 and then at 1,280.00. Wyckoff’s Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

December silver bulls have the near-term technical advantage as prices hit a five-week high overnight. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $19.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is at the overnight high of $19.005 and then at $19.25. Next support is seen at $18.50 and then at the overnight low of $18.275. Wyckoff’s Market Rating: 6.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

Full Article: Gold Solidly Up from Down from Overnight high on Trump Win

By: Jim Wyckoff

© 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR, it’s owner and affiliates/associates may buy/sell and trade the company’s stock written up/video created on from time to time. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.