Market Overview: The precious metals are a bit of a mixed bag this morning, with gold slightly lower while silver is slightly higher. Gold is likely seeing a bit of a pullback following some buying on Friday after news broke of the FBI reopening a probe of Hillary Clinton’s emails. Although it remains unclear what, if any, effect this news may have on the quickly-approaching Presidential election, the issue could potentially add even more uncertainty to the election and could keep investors on their toes in the final days before the nation votes. Markets may see some sideways action heading into the election, although the possibility of increasing market volatility also exists.
Key Data Points: The latest reading this morning on Personal Income and Outlays showed a rise of three percent on income, while consumer spending rose a solid five percent.
The latest reading on Chicago PMI came in below consensus estimates at a reading of 50.6. Estimates were calling for a reading of 54.3. This report is on the softer side of the ledger, yet does still point to ongoing expansion.
Investors will also get the latest reading on the Dallas Fed manufacturing survey due later this morning.
Outside Markets: Markets are relatively quiet to begin the new trading week, and there is the possibility of sideways trade until the Presidential election has come and gone. Stocks are trading flat to slightly lower to begin the new trading week, while interest rates are seeing a slight decline today.
After dipping slightly last week, the dollar index is recovering some lost ground in early action today and appears poised to retest the highs seen last week. Like other markets, however, action in the greenback could go sideways or possibly get more volatile heading into the final days of the Presidential election.
Crude oil is back on the defensive again after falling back below the $50 per barrel level.
The Big Picture: Right now it seems that the Presidential election is likely to dominate headlines over the next nine days. The race will be closely watched, and any increasing uncertainty over the potential winner could possibly fuel buying in gold and other precious metals. Although some data remains on the weaker side, the recent stream of data continues to suggest that a December interest rate hike from the Fed will be seen. This has likely been discounted by the gold and silver markets already, but the metals seemingly still lack any fresh, bullish inputs to catapult prices higher. Signs of weakness in stocks or further easing measures by other global central banks could potentially give the complex a boost. Without any fresh bullish inputs, however, the metals may remain vulnerable to a further sell-off that could attract more buying interest at lower price levels.
