Investors have suddenly shifted to a “risk off” mode as a result of the recent shift in momentum towards Donald Trump being declared as the possible winner of the U.S. election in a couple of days’ time.
Is this economic recovery real? Well if you base your observations on how far the Dow has risen since the financial crisis of 2008-2009 and on the B.S statistics the BLS puts out, the answer would be a yes. However, if you do just a little cursory digging, you will spot that this economic recovery is nothing but a grand illusion.
With Janet Yellen confirmed as the new Fed chairman, gold is now focused on the different economic trajectories of the various major economies. The U.S. is strengthening while the U.K. is trying to cool off its hot housing market.
Spot gold fell to three-week lows below $1,370 an ounce Tuesday, as stocks and commodities also fell amid ongoing speculation over when the U.S. Federal Reserve might begin reducing the size of its quantitative easing program.