Gold During Election Year

Presidential election according to citigroup inc.

Gold during election year. Gold and silver fared well last time a republican stood for re election. The monthly average returns of gold in novembers overall in election years and non election years since 1971. Gold performs the strongest in the midterm election year and the weakest in the post election year while for silver the pre election year is the best year and the election year is the worst.

On average gold prices continue to decrease until january of the following year. Gold and silver which are less tied to the economy than stocks show little recent correlation with election years. Bush faced off against democrat challenger john kerry.

The last time a republican incumbent was up for re election was 2004. If you are a believer in history repeating itself you can find plenty of examples of election year price volatility for gold. In the non election years 2017 and 2018 the price of gold remained fairly steady.

These factors underlie the reason many analysts expect a bumpy ride during election years but also make it a popular time to buy gold. Let s start off with the price of gold and what it typically does each month during the presidential election year which is this year 2019. But in 2019 as the presidential election drew closer.

As mentioned gold moved positively during trump s first term. Both metals prefer the second half of a president s term but it is only because of the unique rally in silver prices in 1979. However during non election years gold tends to command a higher value 9 out of 12 months.

1 actually studies of the past few elections show an increase in prices as election year approaches then a slow decline in gold prices in the months immediately preceding the election and finally a sizeable. Gold pre election years and seasonality. In 1971 2015 period gold lost in election years 0 04 percent on average during that month while gaining only 0 07 in non election years and 0 04 percent overall.