11/04/08 3:08 pm - Big Day for Gold and the Euro

Optimism about the elections caused market rallies across the board today. After finally finding support at 1.2540 last night, the Euro rallied almost 500 points before briefly stalling at resistance at 1.30. Missed last nights rally, and am waiting for a pullback to 1.2900 go long.

COMEX Gold finally broke through $750, and gold stocks are heading into the close with a 15% gain. It is more and more likely that a bottom is now in place at 15.83 for GDX, and more gains over the next few days are likely.

November 4, 2008 · Filed under EUR/USD, Gold

2 Comments »

  1. N. Evans Said,

    November 4, 2008 @ 10:58 pm

    How does election result actually change ANYthing really? Momentary euphoria/exhuberance in some quarters doesn’t change those headlines over there on the right>>>>

    Best I can tell, there WILL be further weakness on the dollar, quite a lot of it, but maybe not before another dip. Of course, that’s not a supportable thesis I have… just a ’sinking’ feeling.

  2. admin Said,

    November 5, 2008 @ 1:07 am

    We’ll see where it goes from here. Obama’s win was probably not a big surprise for the markets, and didn’t cause any major spikes, at least in the majors. How long the deflationary phase lasts is anybody’s best guess, but I predict that a heavy increase in government spending is upon us, which is going to cause inflation sooner or later.
    I’m seeing technical indicators starting to hold up a bit better lately, that’s an encouraging sign that the worst panic may be behind us.

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