Trump has won & the gold price has fallen further

Before we get into consideration of the Trump victory, a quick comment on the gold price is necessary because that is front and centre for traders. Yes, gold has continued to fall notwithstanding all the positive narratives and long term appeal, but we have to factor in this short termism that is driving gold stocks lower across the board. They will continue to fall until the shock waves start to dissipate and then decision making will become more even handed. Maybe it has already stopped falling, but let’s see what happens next week.

We have had a circuit breaker that has accelerated volatility in the gold market over the last week, but that isn't all bad. Volatility will be the key word everywhere for a while with the change of the US Presidency, but we should interchange that word for opportunity, for traders, though investors need to ride the waves. The gold price is still near historical highs, so while the profits of producers may moderate for a short while, it is still the best business to be in. The lower gold price will make almost no difference to high grade producers. Low and marginal grade producers stand to give up the most as they offer greater leverage 

 WeeklyComm16Nov20242.pages.pdf