Republican Senate Takeover Treads on Gold & Silver

Last Tuesday (Nov. 4) marked the mid-term elections and in case you didn’t hear the Republicans won sweeping victories all across the country, taking control of the Senate after a bitter campaign season.

The news buoyed the dollar, which reached a fresh seven-year high against the Japanese yen. Gold and silver subsequently fell sharply in response.

According to MarketWatch:

Trading around four-year lows, gold for December delivery shed $22, or 1.9%, to settle at $1,145.70 an ounce, marking its sixth straight loss.

December silver stumbled 51 cents, or 3.2%, to $15.44 an ounce. It had earlier traded at $15.40 per troy ounce level, its cheapest since February 2010, said a Commerzbank analyst.

Chris Beauchamp, market analyst at IG, told Marketwatch:

“Republicans might be harder on the Fed and loose policy. There’s little reason to hold gold when forward interest rates are going in one direction.”