Tomorrow, December 4, Italy is holding a referendum that will determine the fate of the entire European Union.
Donald Trump’s victory—which shocked Europe’s political and media elite—gives the populists backing the “No” side of Italy’s referendum the political rocket fuel they need for a virtually guaranteed win.
Gold prices are getting pummeled on a daily basis and appear to be coming down as fast as they went up.
First we had Brexit which resulted in both the Euro and the British Pound getting sold off hard. When these two currencies lose value the US Dollar is forced to go higher as per The US Dollar Index. As gold has an inverse relationship to the dollar then gold’s value tends to fall in dollar terms.
The election of Donald Trump also appears to good for the dollar as the expectation is that the re-building of the infrastructure, in all its forms, will give the economy a boost and so investment funds start to flow into the US.
Referendum in Italy
This brings us to
The gold and silver producers made a blistering start to the year; however, the second half of the year has been a totally different story. The chart below depicts the rise and fall of the gold producers which make up the Gold Bugs Index the HUI. This Index has now fallen 60% from its recent high of 282 which suggests to us that the selling pressure should be just about exhausted. Overall the HUI remains some 72.2% off its high (630-175) made in 2011, so there is plenty of room for the stocks to rise once gold resumes its bull market.
The chart shows that a Cross of Death has........
After tagging $19 the night of Trump's victory, Silver prices have tumbled 15% (the biggest drop since Summer 2013's taper tantrum). However, as large speculators dumped their longs en masse, this week also marked another milestone as Silver drops 24% from its post-Brexit peak
Starting in January, President-elect Donald Trump will have a unique opportunity to pack the Federal Reserve with hard money officials.
There are currently two open Board of Governors seats, which will most likely not be filled before the end of President Obama’s tenure.
Gold Spikes Over $60 Before Pulling Back After Trump Upset Shocks The World! But Here Is The Real Shocker…
In the aftermath of what is being called the “greatest upset in political history,” Donald Trump has been elected the next president of the United States and this has markets in shock across the globe.
The next ten days or so will present gold with two major events both of which could impact on gold in different ways depending on their particular outcome and they are as follows:
1. Possible interest rate hikes in the US as the FOMC meet
2. The US Presidential Election
The long shadow of interest rate hikes in the US has haunted the precious metals sector for the last two years and is possibly the most important single threat to gold continuing its rally.
Nigel Farage talking sense to the European Union – well worth 5 minutes of your listening time:
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