Tuesday’s precious metals bull market comes as a bit of a surprise, as it seems investors were caught off guard by the weakening dollar and increased possibility of a Tuesday night Trump victory.
Polls show Trump gaining popularity amidst additional Clinton scandals coming to light. With the resurgence of FBI investigation into Hillary email woes, the Democratic candidate struggles to cling to a narrow lead over the GOP. Investors who have taken a Clinton win for granted are now uncertain as to what Election Night might bring, as evidenced by the volatile markets.
In addition to election market catalysts, the opening of November’s FOMC meeting has illuminated the state of the US dollar, and it appears less robust than previously believed. The yellow metal, along with its sisters- silver, platinum, and palladium- are all experiencing a whirlwind afternoon, with prices rising to 4 week highs. Gold sits at the door of $1300, a number not seen since October 3.
Analysts speculate either candidate will create a continued gold bull market, but most agree a Trump victory could elevate gold prices substantially.
As legal troubles continue for the DNC, investors will continue making precious metals predictions, and the FOMC announcement will certainly add fire to the market uncertainty (though interest rates are unlikely to rise until the December meeting). Tomorrow’s announcement and Election Day forecasts will likely keep the metals market exciting in the coming days.