Gold & Silver Are Consolidating Ahead of the U.S. Presidential Election

Gold and silver trading remained subdued this past week, with traders holding back from significant moves as they await the upcoming U.S. presidential election.

Here’s an update on my observations in the precious metals market. I’m currently working on some additional in-depth content that will be published in the coming week. With only seven trading days left until the U.S. presidential election, financial markets have become quiet as they anticipate the outcome. In this environment, traders are hesitant to make large bets, often resulting in slowed, range-bound trading until the results are announced. This behavior, known as a "volatility squeeze," has been particularly evident in gold and silver over the past week. The encouraging news is that gold and silver are poised to resume their upward trends soon, once they break out of their consolidation ranges.

Gold has performed so steadily over the past few months that its orderly ascent has almost become predictable—talk about a good problem to have! COMEX gold futures recently closed above the critical $2,700 level, issuing yet another bullish technical signal. Over the past week, gold has traded sideways and now sits just $18 shy of its all-time high reached on Wednesday. Interestingly, gold’s consolidation over the past week is forming what looks like a bull flag—a continuation pattern that suggests further gains once gold breaks out on strong volume. Now, we're just waiting for the breakout, which could be triggered by the U.S. presidential election results or potentially even sooner. As I've been saying, I anticipate gold reaching $3,000 fairly soon—a gain of just 9.2% from its current level.