Wednesday, 09 November 2016 14:52

Roller Coaster Ride Is Not Over Yet

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After many busy days and nights, gold trades at approximately $1277 per oz throughout the day after the big gain we witnessed during the US election.  Gold was at a six week high of $1338 per oz due to the risk-off mode in the market. Market participants flee to the bullion market as safe haven. But risk appetite quickly returned and pushed gold down to $1270 per oz on Wednesday morning.

With the surprising victory of Donald Trump , we believe that this is only the start of a volatile market. We have yet to imagine how Donald Trump can bring stability back to the marketplace with his administration in the near future. There will also be fundamental changes in many different markets and US Fed may also change course and direction with their anticipated December rate hike. While there is large degree of uncertainties with Donald Trump’s administration, investors and traders are sure to overreact and send all financial market haywire until market confidence is restored.

 

Watchlist

  • US Fed December Rate decision
  • Foreign currency situation relative to US dollar

 

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Read 3094 times Last modified on Wednesday, 09 November 2016 14:54
Bill H

Trader of Suncorp Gold Inc.

Tel: 604-273-9700

E-mail: bill@suncorpgold.com

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