Gold: Right for the wrong reasons

Last week I said that the Trump rally in gold was unlikely to last. That proved correct, but not for the reasons I envisaged.

Donald Trump surprised pollsters and the establishment, including many conservatives who were doubtful of his ability to hold office, with his ability to channel the anger of average Americans towards the entrenched establishment. And towards Hillary Clinton who represented the status quo.

Trump’s statesman-like, conciliatory acceptance speech also surprised many and has restored confidence in financial markets.

Spot Gold

Gold retreated from resistance at $1300/ounce and is headed for a test of primary support at $1200. Breach of primary support would signal a primary down-trend with an immediate target of $1050/ounce. But expect volatility to remain high until Trump has announced his appointees and has set a clear direction for his presidency. There may still be further surprises in store.

2 thoughts on “Gold: Right for the wrong reasons

  1. funstein19 says:

    The repatriation of overseas profits will cause lots of dollar buying. The plan was not as successful when Bush did it but that was before Swiss bank secrecy attacked, the EU going after Apple and Germany buying stolen tax records about citizens in Luxembourg.These profits will be converted to dollars and cause the dollar to spike.

    ​

    On Fri, Nov 11, 2016 at 5:59 PM, Gold, Stocks & Forex wrote:

    > ColinTwiggs posted: “Last week I said that the Trump rally in gold was > unlikely to last. That proved correct, but not for the reasons I envisaged. > Donald Trump surprised pollsters and the establishment, including many > conservatives who were doubtful of his ability to hold ” >

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