Metals markets opened marginally higher on this US Election Day as the US dollar traded virtually flat and as crude oil advanced by about thirty cents per barrel. Speculative participants appeared to be willing to take only small bites at the market.
For the second time in four years, the Republican Party has blown a presidential election through the choice of a running mate. What little chance the GOP had in winning the election has gone up in smoke with the selection of Wisconsin congressman Paul Ryan.
After spending all of this year ignoring the fiscal disaster that the US is facing at the end of 2012, markets are finally taking off the blinders. That might explain why the S&P 500 has dropped 4.3% from its April 1 peak and may have more to come.
This morning’s New York trading action started off on the downside once again for the metals. Gold practically erased yesterday’s gains and dipped to near the $1,640 per ounce while silver also retreated from last night’s closing values and dropped to near $32.20 the ounce.
Whereas gold had opened in New York right around the pivotal $1,700 mark, Labor Department data sent the yellow metal some $20-25 lower, and to a low of $1,675 per ounce, within the first hour after the figures were released.
I am following this movement closely because it has the potential to turn the election upside down this year. This could be the Tea Party of 2012, with a similarly large impact on the election results.