Positions as of 3 November, 2026
These midterm elections didn’t have significant fundamental implications for gold. It simply rebounded off its futures floor, and such futures-fueled rallies tend to grow large.
Amid stock market stress, gold has a chance right here and now to reassert macro leadership, keeping SPX neatly below its Dome of Doom. The precious metals complex has been quite oversold of late and was due for a rally.
Over the half-century since the dollar’s link to gold was cut, gold has more than kept pace with the cost of living in the major currencies, although not reliably and not on every timescale.
All of this might have been forgiven had the economy kept humming. But beneath the AI-driven flirtation with all-time market highs is an electorate feeling the corrosive impact of inflation...
Despite the decline, gold and silver are not holding up as expected, with silver, often referred to as "Dr. Copper," also seeing a downturn.
