Gold consolidates
It looks as if gold is back in one of its periodic consolidation phases, having hit a fresh record high of $2,790 during last Thursday’s Asian Pacific session. Prices subsequently pulled back sharply and have traded around the $2,730 area ever since. Once again, this is helping to bring down the daily MACD back to more reasonable levels which could create a platform for a fresh rally. This analysis would be fairly reasonable under normal conditions. But the fact that US voters are going to the polls today to elect a new president means that conditions are anything but normal. It’s of no use speculating over how gold may react to the result, assuming we get one tomorrow, any more than it is trying to second-guess whether Harris or Trump is going to win. The best thing to do is hunker down and wait for it all to be over. It’s likely, though not definite, that there’s some overnight volatility across precious metals, just as there could be across FX, bond and equity markets. But the quicker we get a clean result, then the quicker that ‘normality’ can return to the markets.
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