Where just 1.5 weeks ago a Trump victory would have been hailed to be bullish for gold by the Pompom wavers (I failed to see why either candidate would have been good or bad) the metals have responded to the US election with a resounding thud. That is because there is much positivism surrounding the new administration as a businessman in the White House is supposed to work well with a republican congress to turn back all the <insert here: progress or regression, depending on your political view> of the last 8 years.
At least that is the story the financial media are cooking up to explain the rally (it wouldn’t be a reaction to all the pre-election fear mongering that led to irrational selling, would it?). Now the positive stuff needs to play out before the precious metals will have their day. Remember that gold, the miners and silver (in that order) led the bullish turn in 2016 for broader markets. They can lead the other way too.
But for those who obsess on gold and silver in a vacuum (which is unhealthy), tuning out the rest of the macro , the metals are this morning, right on the line (gold) and just above the line (silver) between short-term bounce potential and the onset of perhaps a final drive lower. That line would be the May lows. Here are the charts as of 6:40 ET.
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