
Gold futures have not been able to break out of the sideways channel since mid-August. The Congress failed to put together a “stimulus” package that both sides could agree on. Gold traders showed their disappointment by selling gold. Of course, the US Dollar rallied on that same news but fails to hold levels above .9400. At the same time gold is reluctant to trade below $1,850. Now we’re just a hand full of days away from the Election and while I do believe there will likely be a huge whipsaw type of trading event on November 3rd, I also see gold breaking out above $2,000. Fiscal stimulus, Dollar weakness, rising debt and “keep rates low for long” has not gone away! Ultimately gold moves higher. Not to mention that this current environment undoubtedly leads to inflation. There’s no way around it if President Trump does get re-elected. The economy is showing signs of life. The economy will come back. We’re going to look back a year from now and say, “I should’ve bought more gold below $1,900!”
