Gold futures GCZ2 +0.34% fell $1 on Wednesday in the wake of the U.S. presidential election. See Wednesday’s story: Gold market mulls dollar, debt woes, Obama.
On Thursday, they bounced back, climbing $12 to settle at $1,726 an ounce but that’s not quite the Obama win-induced rally the market was expecting. Prices are still stuck in the $120 or so trading range they’ve been in since late August.
“The dust is still settling after the U.S. election,” said Ben Traynor, chief economist at BullionVault, a physical gold and silver market for private investors online. “Despite all the hoopla surrounding the election, nothing of substance has changed.”
And “the focus has started to shift towards the fiscal cliff,” he said.
Before the election results, many investors bet on a win by Obama, bidding up the gold price by nearly $32 an ounce Tuesday, on assumptions that the Federal Reserve will continue its policy of monetary easing during the president’s second term. Compared to that rally, enthusiasm has quieted down, but that probably won’t last for long.
Read More at marketwatch.com . By Myra P. Saefong.