Election Impact On Gold

Matt weller global head of research at city index sits down with rhona o connell head of market analysis for emea and asia at stonex group to discuss the drivers of the gold market the potential implications of the 2020 us election on gold and the key differences between gold and silver.

Election impact on gold. Historically speaking the price of gold and other precious metals shows clear patterns and price trends. For positive indicators for the gold price the precious metals expert points to the massive stimulus package announced by each presidential candidate. However there are caveats to these historical precedents.

More broadly the price action in gold and silver has seen consistent patterns in the months around us elections. The bull case for metals lies in continued or escalating uncertainty. The election has not changed long term fundamentals behind gold and silver owing to a divided congress said neil meader director of gold and silver at metals focus.

The dollar weakens and precious metals surge. Right now the prediction markets and the polls point to a biden victory. The election results are one key variable in forecasting how gold and silver markets might finish the year.

The dollar weakens and precious metals surge. Right now the prediction markets and the. Presidential elections impact on gold weekly analysis chart of the week.

Generally during an election year gold prices are highest in september and october. Andrew maguire believes that regardless of the ultimate resolution of the us election once an initial period of volatility settles the outlook for gold is positive. They stabilize after the election and by inauguration day have leveled off the previous levels.

They will anticipate higher taxes more economy crushing lock downs and even more debt funded bailouts and spending. But the pollsters weren t even close to correct 4 years ago. However with the election shaping up to be very close or even contested many analysts and experts believe gold will benefit from the uncertainty that this environment will create.