So far, despite the "hung" election, the U.S., and not least its markets, continues to function. It is true that the Nasdaq is a "shot duck", having now fallen by about 40% from its highs of only seven months ago and having established solid downtrend lines in the process. But the Dow and the S&P 500 are still hanging in there, long-term Treasury bond yields are still low (the yield curve here has been inverted since February), the U.S. Dollar is once again strengthening, and the FOMC just met and did not move interest rates for the fourth time in a row. The last time that the FOMC moved rates (up 0.5%) was on May 16.
Gold, in U.S. Dollar terms, is positively miraculous. On this site, we maintain three different point and figure charts for $US Gold - $US5 x 3, $US2 x 3, and $US 1 x 3. The most tactical of these charts - the $US 1 x 3 chart - has not moved since October 26. We have not checked this exhaustively, but we don't think there is a three week period in the entire history of "free market" Gold (ie - Gold since 1971) when this chart has not moved up or down for three solid weeks. If it has happened in the past, it is a VERY rare occurrence.
Spot Future Comex Gold
Here is the course of trade for spot future Comex Gold since October 26. Look at the closing prices column. Our Gold Point and Figure charts are based on these closing prices. As you can see, the lowest closing price in this series is $US 264.40 on October 27 while the highest closing price is $US 266.90 on November 9. That is a range of exactly $US 2.50. Since the most tactical Gold point and figure chart we have is the $US 1 times three chart, the movement of closing prices throughout this series is not enough to move the chart either up or down from its level ($US 264) of October 26.
The other point to be made here is that the trading range for Spot Future Comex Gold closing prices since October 26 has been 0.95%. Over the same period and by the same criteria, the trading range for the $US index has been 3.09% (114.87 to 118.42).
Right now, while the U.S. faces a genuine internal crisis and while the strains on the global financial system have not gone away, if anything, they are getting worse, Gold is absolutely frozen solid against the U.S. Dollar. That's really all there is to say here. We are now working flat out on the upcoming issue of The Privateer - to be sent to subscribers on November 19 (Nov. 18 in the U.S.). We will have a lot more to say both about the U.S. election and about Gold in that issue.
