Market Overview: There is a lot of green on the board thus far this morning as gold, silver, stocks and crude oil are all moving higher. Banks are closed today in observance of the Columbus Day Holiday, and markets may simply drift higher on lower trading volumes. Investors are also likely digesting last night’s second Presidential debate, a debate that turned ugly and is causing quite a stir on social media. As the election approaches, it may become more and more an area of focus for investors. Should the race become tighter or should it look like a Trump victory is possible, perceived safe haven assets such as gold and silver could potentially benefit.
Key Data Points: There are no major economic announcements set for release today.
Outside Markets: Stock index futures are pointing to a higher open today as investors get ready for earnings season and as investors consider last night’s Presidential debate. Higher equities today could potentially be indicative of another nod for Mrs. Clinton. Strength being seen in gold and silver this morning, however, could potentially be indicative of a strong showing by Mr. Trump last night.
Stocks remain not far from previous all-time highs, yet have seen some volatility creeping into the marketplace. The recent range in equities has been getting tighter and tighter which could possibly point to an upcoming upside breakout or breakdown.
Crude oil is trading above the $50 per barrel level as optimism over a production cut or freeze appears to be on the rise.
The dollar index has seen some solid strength lately and is moving higher in early action today. Weakness in the British Pound could potentially help keep the dollar moving higher as worries over Brexit increase.
The Big Picture: Gold and silver have been lacking any fresh, bullish catalysts for some time now, and with a looming rate increase and relatively strong appetite for risk being seen, the metals could potentially see further selling pressure. As investors get used to the idea of higher rates, attention will likely turn further towards the upcoming Presidential election. For now, it seems the marketplace is largely looking for a victory by Hillary Clinton. This race has been tight, however, and could possibly see some dramatic shifts as election day approaches. If Donald Trump is able to close the gap, investors may become a little anxious as a Trump Presidency could bring with it a large degree of uncertainty over many geopolitical and economic issues. This could
potentially drive some selling in equities and risk assets and could work to the benefit of perceived safe haven assets such as gold and silver.
