Gold Sees Price Pause, US Presidential Election Results Awaited

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closes in 5 hrs. 26 mins.Nov 04, 2020 11:34 NY Time

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Silver Price & PGMs

Nov 04, 2020 11:34 NY TimeKitco 10AM Silver Fix

Silver	23.94	-0.24
Platinum	865.00	-3.00
Palladium	2171.00	+3.00
Rhodium	11400.00	+500.00

(Kitco, Wed. Nov. 4th, 2020) – Gold futures prices are near steady in early U.S. trading Wednesday, as the yellow metal and many other markets are pausing amid a U.S. presidential election whose results are still up in the air. The gold market has come off its daily lows as the U.S. dollar index has weakened in early U.S. trading. December gold futures were last down $1.60 at $1,908.80 and December Comex silver was last down $0.194 at $24.14 an ounce.

Asian and European stock markets were mixed overnight. U.S. stock indexes are also set to open the New York day session higher.

The U.S. presidential election is a cliffhanger, with President Trump once again performing much better than the polls were forecasting. It could be days before a final result is seen and a winner declared. Trump has already said he will challenge the results if he loses. Markets could remain in limbo and languish until a winner is declared. Meantime, the Republicans appear to have kept control of the U.S. Senate, while the Democrats kept control of the House of Representatives.

Gold prices are seeing buying interest limited at mid-week, amid the so-far orderly U.S. elections and despite no winner yet in the race for president. Despite the very tight presidential race that could take days, or longer, to determine a winner, traders and investors are presently not exhibiting keen risk aversion Wednesday. The marketplace was somewhat assuaged by the fact that so far there has been no major civil unrest in the U.S. streets.

In other overnight news, the Euro zone September producer price index rose 0.3% from August and was down 2.4%, year-on-year. There are still no signs on the horizon of problematic inflation in the major world economies, even though many economists and analysts have been predicting such will occur at some point.

It’s also a week in which the Federal Open Market Committee (FOMC) meets starting Wednesday morning and on Thursday afternoon issues a statement on U.S. monetary policy. Fed Chairman Powell will also hold a press conference Thursday afternoon. No major changes in U.S. monetary policy are expected, but the marketplace will be looking for guidance on future actions from the Fed.

And on Friday the U.S. employment situation report for October from the Labor Department is out. The key non-farm payrolls number is seen up 530,000 and the unemployment rate is seen at 7.7% versus 7.9% seen in September.

The important outside markets early today see the U.S. dollar index slightly up. Nymex crude oil prices are higher early today and presently trading around $38.50 a barrel. Crude oil has seen a strong rebound after hitting a five-month low Monday. The yield on the benchmark U.S. 10-year Treasury note is 0.78% today.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the international trade report, the U.S. services PMI, the ISM report on business services, the global services PMI, and the weekly DOE liquid energy stocks report.

Technically, the December gold futures bulls have the overall near-term technical advantage and are gaining a bit of momentum. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at the overnight high of $1,917.90 and then at $1,925.00. First support is seen at $1,900.000 and then at the overnight low of $1,881.80.

December silver futures bulls still have the overall near-term technical advantage as they have stabilized prices and now have some momentum. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October high of $25.71 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.81. First resistance is seen at the overnight high of $24.62 and then at $25.00. Next support is seen at $23.50 and then at the overnight low of $23.26. 

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com