At long last, it’s all over. Residents of Ohio, New Hampshire, Florida and other swing states can at last watch TV again without being bombarded with political advertisements. Precious metals and commodities in general have reacted positively to Obama’s re-election, while the dollar has sold off.
Gold and silver’s biggest move of the 24 hours actually occurred yesterday afternoon, however, prior to the result: the metal swiftly moving from around $1,690 to $1,715 in a matter of minutes, while silver gained close to a whole dollar per ounce during the same period. Perhaps the “longs” had a premonition that Obama would win (thus cementing weak dollar policies for another four years). A better interpretation is that fundamentals for precious metals are strong enough that it wouldn’t really have mattered who won, so physical buyers leapt at the fleeting chance to buy at under $1,700.
The Dollar Index has actually held up relatively well over the course of Obama’s first term (better than during George W. Bush’s first term from 2001-2005). A key test now awaits dollar bulls though, in the form of the fiscal cliff: shorthand, as the Telegraph informs us, for the $607 billion of tax increases and spending cuts due to take effect from January. The Congressional Budget Office has warned that this will push the economy back into recession in a matter of months – if all the cuts and tax rises are enacted.
This is partly why the Federal Reserve will have to persist with its efforts to devalue the dollar. Another key reason is explored in the video below (hat-tip, JSMineSet.com).
Below you may find the video.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
US Election: Now For The Hangover
Published 11/07/2012, 07:01 AM
Updated 05/14/2017, 06:45 AM
US Election: Now For The Hangover
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.