From the desk of Catalin Chiloflischi, CEO Canarc Resources
I have followed Florian Grummes for some time now, and and think this recent piece is a must-read for gold investors looking for guidance on how to trade the pre- and post-US election timeframe. ~CC
The US-elections are getting close and while mainstream media is already sure about the outcome I think there is still room for a big surprise. Looking at the market it is clear that the participants are not as sure as the mainstream media. Otherwise we would have already seen a sustainable rally in the stock-market. But the S&P500 is moving sideways somehow confirming the recent break of its uptrend-line.
At the same time the gold market is struggling to get back on its feet although it could be much lower in regards to the strong US-Dollar. This can certainly be interpreted as some inner strength too. So far the 200-MA has hold and also many of the mining stocks have turned around at this important moving average. But we´re still missing a convincing bounce in the metals and I think we won’t get it before the elections anymore.
Fundmanagers and market participants surely don’t want to have another Brexit moment so they remain either at the sidelines or keep positions small in front of US-elections. You should do the same and not overexpose yourself at the moment. If Hillary gets elected we will get the rate hike in December which is already priced in. If Trump is winning instead… CLICK HERE for the complete article