Gold Falls As Clinton Probe Dropped

November 7th, 2016 by

Federal Bureau of Investigation

Federal Bureau of Investigation

Gold prices are solidly lower as stocks around the world soar on news that the FBI would not reopen its probe into Hillary Clinton’s use of a private email server to conduct State Department business. Stock markets from Asia to New York made substantial gains on the news, which traders see as improving Clinton’s chances to regain lost ground in last-second campaigning before Tuesday’s Presidential election.

Gold dropped $15 an ounce at the opening of Asian markets last night, as traders swerved hard into risk-on mode. FBI Director James Comey took the unusual step of notifying Congress about the state of the Clinton email investigation on a Sunday, saying that reopened probe will be closed again, with no charges being brought against Hillary Clinton.

gold-downSpot gold was trading more than $20 lower on the US open, snapping a seven-day win streak. Spot silver was down 19 cents. Silver doesn’t see the level of safe haven demand that gold does, so was slightly less affected by the FBI bombshell. Government bond prices also fell on the news, sending yields higher. The dollar advanced this morning, breaking a six-day losing streak. The British pound is, unsurprisingly, the major currency hit worst by the dollar rally.

Gold futures gained 2.2% for the week on Friday’s close, as anxiety over political struggles over Brexit in the UK added to concerns by Wall St that the surprise FBI investigation into Clinton’s email server might propel Donald Trump into the White House. This marked the fourth week in a row that gold had logged a gain.

The news that the Clinton probe had been closed saw the S&P 500 open more than 1% higher. This should give the index plenty of room to snap nine straight days of losses — the worst losing streak in 36 years.

oil market

© Warenemy

Crude oil prices gained this morning as the secretary general of OPEC talked up the possibility of a cut in oil production, which Russia would join. If the impossible happens, and an agreement is actually reached, shale drilling in the US would ramp up as keep a low ceiling on prices. Prices hitting $50 a barrel has already enticed new fracking operations. Baker Hughes reported Friday that nine more oil rigs had been started, bringing the active total to 450.




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