Gold Gives Back Much of Tuesday’s Gains
Nov 6th, 2008 | By Doug Casey | Category: Financial NewsGold was very tightly rangebound from the far East through to mid-morning in New York, when it suddenly fell off a cliff, dropping $20 in a half hour, after which it leveled off and traded sideways for the rest of the day before finishing at $736.90, down $24.20. Overnight, gold is little changed.
Platinum peaked above $880 in the late morning and, though it gave ground thereafter, ended in positive territory at $858/oz., up $15. Overnight, platinum is trending lower.
Silver staged a strong rally in the last two hours of the Comex, rising almost to $10.60 before sliding lower through the Globex to close at $10.25/oz., up 8 cents. Overnight, silver has edged higher. (Click here for charts)
It was surely disappointing to gold bugs that the metal couldn’t string together two powerful days in a row, especially on a day in which its sister metals both finished higher.
But gold did get little help from the usual suspects, as crude trimmed some of Tuesday’s gains, and dollar rose against the euro.
“Now that at least one major uncertainty is out of the way – the small matter of the U.S. presidency – markets are now confronted with a myriad of other financial and economic uncertainties,” said Mark O’Byrne, a director at Gold and Silver Investments Ltd. “Indeed, conditions now are arguably more uncertain than at any time since the 1970’s and even the 1930’s.”
Far from being put off of gold by the economic crisis, O’Byrne wrote that, “We said some weeks ago that the recent sell-off in precious metals was likely to end around Election Day and believe that this has indeed happened and that gold will resume its secular bull market in the coming weeks.”
And he concluded: “Important elections often see markets reverse course and witness trend reversals, and this is one of the most momentous election victories in U.S. history.”
Ned Schmidt, editor of the Value View Gold Report, captured our thoughts when he said he believes that the “policies of the next president will further weaken the financial strength of the U.S.,” and that tax and spending policies will drive more money out of the country.
A “dollar crisis [is] likely to develop as a result of [the] election … Investors should be buying gold aggressively,” Schmidt wrote.
Source: Gold Gives Back Much of Tuesday’s Gains
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.