A short lived burst in gold prices during Tuesday’s election madness has since overwhelmingly faded into a now bearish market for the safe haven commodity. Gold has dropped to 5 month lows, without indication prices will return bullish anytime soon.
Reasoning for the market turn is nearly entirely attributed to a increasingly robust dollar. Investors have renewed confidence in the fiscal policies of the new President-Elect and his guarantees to pump money into national infrastructure, leading buyers to feel less pressured to invest entirely in the precious metals commodities.
While interest rates remain likely to increase in the upcoming FOMC meeting, the frantic rush to turn dollars to gold has subsided a bit.
For bullion buyers, the current bear market is a fantastic time to stock up on your shiny, as history shows it will not last, but for the American economy, faith in the future of equity markets as well as commodities brings some much needed hope in recent dark days.
