Tuesday November 6, 2012 1:06 PM
Comex gold is sharply higher, perhaps helped as the market starts to factor in the potential re-election of President Barack Obama despite a tight race, as well as a bounce from oversold levels, says Daniel Pavilonis, senior commodities broker with RJO Futures. A number of analysts have suggested an Obama win might be most supportive for gold due to ideas that challenger Mitt Romney would not nominate Federal Reserve Chairman Ben Bernanke for another term, thereby meaning potential for less accommodative monetary policy in the future. Also, Pavilonis says, gold may have pulled back too far in a recent correction lower. “At $1,680, the RSI (Relative Strength Index) was way oversold on a daily chart,” he says. “The last time it was at those levels on the RSI, it created a nice buying opportunity. I think you’re starting to see big money get back in as we get closer and closer to the end of the elections…More (expected) easy policy is good for commodities.” As of 12:55 p.m. EDT, Comex December gold was $34.90 higher at $1,718.10 an ounce.
By Allen Sykora of Kitco News
PS. Okay what says Schiff, Paulson, Soros, Gartman, etc. on election outcome and how it will affect commodities and market casino in general.....first sniffs already so far today, pricing in Ohio already from its exit polling or rumours??? What about tomorrow and over next few months and into 2013, what kind of hangover from fiscal cliff in US, more from China, Europe, Middle East, etc......