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Gold miners crushed after Clinton is cleared by the FBI

U.S. election week is finally here and in a couple of days we will know whether the 45th President of the United States will be a Clinton or a Trump.

Judging by the financial markets today it would appear as though Hillary Clinton is once again favourite to win the race to the White House. Following news that the FBI has cleared Mrs Clinton of any wrongdoing over the email scandal, markets have turned bullish again.

As a result the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is storming higher and at the time of writing the benchmark index is up 0.8% to 5,221 points.

Unfortunately safe haven assets such as gold have not fared so well. The spot gold price dropped 1.3% to US$1,287 an ounce in early trade, before rebounding to US$1,293 an ounce.

As you might expect Australia’s gold producers have been hit hard. It would appear as though traders that gambled on a Trump victory sending the gold price rocketing higher have quickly exited their positions today, driving the miners lower.

Here are the worst affected miners:

Company name +/-
Beadell Resources Ltd (ASX: BDR) -5%
Cardinal Resources Ltd (ASX: CDV) -25%
Millennium Minerals Ltd. (ASX: MOY) -3%
Newcrest Mining Limited (ASX: NCM) -2.8%
Northern Star Resources Ltd (ASX: NST) -4.5%
Ramelius Resources Limited (ASX: RMS) -6%
Regis Resources Limited (ASX: RRL) -4.7%
Resolute Mining Limited (ASX: RSG) -3.3%
 Silver Lake Resources Limited. (ASX: SLR)  -5.5%
 St Barbara Ltd (ASX: SBM) -4.6%
 Troy Resources Ltd (ASX: TRY)  -6.8%

Considering how the Brexit surprised everybody, I wouldn’t count on a Clinton victory being a foregone conclusion just yet. This could mean more volatility ahead for the gold price. For this reason, I would avoid the sector for the time being.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.