Magazine article Modern Trader

Global Trends Are Gold Standard for Metals

Magazine article Modern Trader

Global Trends Are Gold Standard for Metals

Article excerpt

Only marginal changes resulting from the U.S. elections are expected to appear in base metal markets, which currently are being driven more by global trends, mainly in Europe and China, according to traders and analysts. But precious metals may move more as a result of monetary easing.

The prospects for U.S. federal fiscal restraints resulting from possible expiration of tax cuts and automated spending cuts two months after the election likely will keep clarity from appearing in the markets at least until sometime early next year, says David L. Abramson, director of research with BCA Research.

"The fiscal issues pretty much rule out any big positive," he says. "No matter who wins the election, there is still fiscal uncertainty at least until January or February. So for the remainder of the year the U.S. is really not going to be a huge positive to offset the negative in Europe and China. …

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