In spite of pressure from uncertainty in the U.S. elections coming up on Tuesday and plummeting crude oil prices, all three major stock indexes saw only small losses today. Gold was up $2.40 per ounce, all of it coming on a sagging dollar.
The modest turnaround was fueled by a growing sense that the stock markets were oversold and the proverbial calm that precedes a storm has descended as we wait for Tuesday. The biggest story, however, was found in the price of oil.
Nov 7 Gold retreated on Monday as the U.S. dollar and stocks strengthened after the FBI said it stood by its earlier finding that no criminal charges were warranted against Democrat Hillary Clinton just two days ahead of the U.S. election.
The dollar index, which measures the greenback against a basket of major currencies, was up 0.22 percent 97.283.
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Wall Street and Main Street both look for gold to continue its recent climb next week, based on a pair of Kitco News weekly surveys.
Traders and analysts who take part in the Wall Street survey look for gold to climb during the early part of the week on uncertainty about the U.S. presidential election, with some polls showing a difference of only a couple of percentage points between Republican nominee Donald Trump and Democrat Hillary Clinton. After the outcome, they say, gold’s direction may hinge on who wins.
Seventeen market professionals took part in the Wall Street survey. Eleven participants, or 65%, look for gold to be higher next week. Three, or 18%, voted lower, with the same result for sideways. (The total adds up to 101 percentage points due to the effect of rounding).
Meanwhile, 507 Main Street participants submitted votes in either an online or Twitter survey. A total of 363 respondents, or 72%, said they were bullish for the week ahead, while 102, or 20%, were bearish. The neutral votes totaled 42, or 8%.
Reference: Kitco, Reuters
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