Here's Where Gold & Silver Stand After the Big Election

U.S. presidential elections are always high-stakes events, filled with tremendous uncertainty, and this trend has only intensified over time. Significant volatility and market turbulence are common, especially when results are announced. This recent election was no exception, with winners emerging in the U.S. stock market, dollar, and Bitcoin, while commodities including gold and silver faced setbacks. Nonetheless, gold and silver’s bull market and future prospects remains strong. Let’s examine their current position and likely path forward.

Rising over 50%, gold has been a stellar performer over the past year. But, as you probably know, no bull market in history has ever gone straight up — there will always be pullbacks along the way. And today was one of those days for gold, which dropped $84.73 an ounce or 3.09%. Gold closed below the $2,700 support level in COMEX futures, causing me to shift to a defensive stance in the short-term (this only applies to futures trading and mining shares, not the long-term holding of bullion). I closely watch $100 increments in gold futures because they often form key support and resistance levels. Though gold is experiencing a shorter-term pullback, its uptrend of the past year is still intact as you can see from the uptrend line. Absolutely nothing has changed about gold’s bull market and long-term prospects, as I will explain shortly.

I closely monitor silver priced in euros, as it strips away the effects of U.S. dollar fluctuations, highlighting silver’s intrinsic strength—especially on days like today, when the dollar experiences significant fluctuations. Silver priced in euros recently closed below the €30 support level I've been tracking. However, this support is more accurately viewed as a zone between €29 and €30, rather than a strict horizontal line. I’m now watching to see if silver can hold within this zone and potentially bounce back from here—and this zone may be even more important than the $32-$33 zone discussed earlier.

The precious metals bull market remains firmly intact, supported by numerous bullish factors that continue to drive it forward. As I discussed recently, the U.S. faces a massive debt burden that no single president can undo, given decades of accumulation. And it’s not just the U.S.—nearly every major economy is similarly indebted, a situation beyond President-elect Donald Trump’s influence. The fiscal and monetary challenges in these countries further strengthen the long-term case for precious metals.

Also, I’d like to clarify my approach to investing in precious metals. I hold a core, long-term position in physical gold and silver bullion, which I accumulated at much lower prices, and I plan to keep it through the global financial reset I anticipate. I expect gold to rise beyond $15,000 per ounce and silver to reach several hundred dollars per ounce. Despite fluctuations that may occur in the precious metals market, I have no intention of selling this core bullion position anytime soon.

Additionally, I engage in shorter-term trades in precious metals futures and mining shares, which are far more volatile and risky, suitable only for experienced investors. So, when I mention taking a defensive stance, I’m referring to reducing my exposure in these high-risk, shorter-term trades—not in my core bullion holdings. While I analyze and share price charts, this shouldn’t be seen as an endorsement or encouragement of short-term trading in precious metals.

I use a trend-following approach to markets and trading, a strategy that has proven successful for numerous market legends. I don’t aim to predict tops or bottoms; instead, I focus on capturing the middle—the “meat”—of the movement. This is why I turn bullish on breakouts and shift to a defensive stance when key supports are broken. I’ve found that many misunderstand this trend-following method, assuming it requires predicting every high, low, zig, and zag. I’m not clairvoyant, nor do I have a crystal ball—I simply respond to what the market is telling me in real time.

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