Last Tuesday (Nov. 4) marked the mid-term elections and in case you didn’t hear the Republicans won sweeping victories all across the country, taking control of the Senate after a bitter campaign season.
The news buoyed the dollar, which reached a fresh seven-year high against the Japanese yen. Gold and silver subsequently fell sharply in response.
According to MarketWatch:
Trading around four-year lows, gold for December delivery shed $22, or 1.9%, to settle at $1,145.70 an ounce, marking its sixth straight loss.
December silver stumbled 51 cents, or 3.2%, to $15.44 an ounce. It had earlier traded at $15.40 per troy ounce level, its cheapest since February 2010, said a Commerzbank analyst.
Chris Beauchamp, market analyst at IG, told Marketwatch:
“Republicans might be harder on the Fed and loose policy. There’s little reason to hold gold when forward interest rates are going in one direction.”
See full story on marketwatch.com
Photo courtesy of marketwatch.com