Has the market finally remembered that an election is coming?
'Sell everything' is the mantra today as market participants head for the sidelines in stocks, bonds and precious metals. Gold is getting hit hard today after a relentless rally for three months. It's down $52 to $2734, or 1.8%.
Given how strong gold has been, that barely eclipses the past two days of gains and isn't threatening any kind of trendline.
The best outcome for gold on election day would be some kind of uncertainty, followed by a deficit-ballooning Congressional sweep by either party. The caveat to that is that it could cause a jump in yields, which should boost the dollar. That said, dollar strength has been no impediment to gold gains recently.
Moreover, I imagine Trump (and his tariffs) are better for gold than the alternative.
Technically, I expect bids at $2700.