Market Overview: Gold and silver are both seeing some decent selling pressure in early action today to kick off the new trading week. The metals are being sold as risk appetite comes roaring back following an announcement yesterday that the FBI has again cleared Presidential candidate Hillary Clinton of any charges. This latest development follows the announcement recently that the FBI would reopen its investigation into Mrs. Clinton’s use of a private email server. The notion of Mrs. Clinton dealing with such an investigation during the election had put markets and investors a bit on edge, and could have potentially impacted the election results. Investors appear to be breathing a lot easier today, as stock index futures point to a sharply higher open while perceived safe haven assets such as gold, silver and bonds are sold off.
Key Data Points: This week will be on the lighter side of the ledger, as markets and investors focus on tomorrow’s Presidential election. There are no significant data reports set for release today. Chicago Fed President Charles Evans will be speaking later today at a conference in Chicago. There are also several other Fed officials speaking throughout the week at various engagements.
Outside Markets: Stock index futures are pointing to a sharply higher open following the announcement that the FBI has once again cleared Mrs. Clinton of any charges. This announcement has seemingly removed a significant degree of uncertainty from tomorrow’s election, and while the race remains quite close it may potentially help give Mrs. Clinton a boost as she crosses the finish line.
Gold and silver, along with bonds are under pressure this morning as the flight to safety appears to be abating.
The dollar index is also sharply higher this morning in early trade, and is likely a contributing factor to gold and silver’s weakness today.
The Big Picture: The highly anticipated Presidential election is almost here, and with it will come a new era of leadership. Markets appear to be considering a Clinton victory this morning, although the race remains very tight. A Trump victory could, however, have a significant impact on markets should he pull it off, and some investors may remain fairly anxious until all the votes have been counted.
There is also the possibility of a disputed Clinton victory, as Trump has said that he may or may not accept the election results. A disputed outcome could potentially fuel buying in perceived safe haven assets such as gold and silver.
