Volatility in gold and silver has been on full display the past 24 hours. As the US presidential election approached this week, gold declined $30 to $1275/oz on the prospect of a Clinton victory.
However, as initial poll results came in and were favorable for Trump, gold reversed course and rocketed higher through overnight trading. Shortly after 12 AM EST when most polling had closed, gold was up a staggering $60, to $1335/oz. Stock markets around the world were plummeting with circuit breakers triggered on US equity futures markets.
As the dust settles and Trump’s victory is being digested, a sense of “normalcy” is returning to markets. Gold and silver have given back gains, and US stock markets have moved into positive territory… although bond yields remain elevated, perhaps indicating higher inflation and interest rates are on the horizon.
Two steps forward, one step back.