by Craig Hemke
Warning: Here comes another one of those “keep your eyes upon The Big Picture” articles. Day traders and others inclined to be impatient should probably just skip it. On second thought, day traders and the impatient are probably those most in need of reading it.
There has been a lot of news over the past week. Some of it interpreted as good for the precious metals, and some of it—incorrectly—has been interpreted as a sell signal. So today, rather than focus upon the short-term direction of price, let’s instead focus upon that aforementioned Big Picture.
When we do, what do we see?
Let’s start with the election result. If it stands as is, then the only change in U.S. government is moving from a Republican to a Democrat president. In terms of deficit spending, is there any reason to think that Biden will be more fiscally “hawkish” than Trump? Of course not. This alone is bullish for gold. But then think of the still-possible chaos that could follow voter fraud investigations and a change in the result. You’d have to think that’s a pretty bullish scenario, too, at least in the short term.