Gold Price Before Us Election

Again no clear pattern emerges.

Gold price before us election. Election risk remains underpriced in the precious metals space according to a report published by citigroup inc. Gold has traditionally been regarded as a safe haven in challenging economic times and therefore if there is a positive outlook just prior to an election it is a predictable consequence that the gold price would come under pressure. Kitco news after dropping to a two month low this week gold could climb back above 2 000 an ounce and hit new record highs before the year end as the u s.

Politics creates price sensitivity. In 2004 the price of gold traded as high as 426 during the first quarter as the federal reserve kept us interest rates at 1 00 but slipped below 400 on numerous occasions ahead of the november. Gold prices thirty trading days before and after u s.

If you begin to consider that trump will not win this election and if you look at some of the people on the other side like an elizabeth warren who i personally think may win this election you ll have to consider how the u s. Political landscape tax. The pre election 12 02 percent and election 12 76 percent years are between but gold s highest performance is evidently closer to the midterm year as one can see in the chart below.

But in 2019 as the presidential election drew closer the price of gold took off. On the other hand in 1976 the yellow metal continued its upward trend and jumped 2 73 percent the day after elections. At the same time the price of gold has been incrementally increasing since november 2016 it s risen from us 1 183 per ounce at that time to around us 1 900 a month before this year s election.

Sebag added that political and macroeconomic uncertainty could add tailwinds to gold. Presidential elections just a few weeks away the metals research team at refinitiv analyze how the gold price might react in the run up to the election day and the possible outcome. Last year the price started at around 1 290 oz.

On the contrary the second year of the presidency is the best for the price of gold as the shiny metal rallies 12 89 percent on average. The price of gold from the election day 100. If you take the last three elections in 2004 2008 and 2012 for example the 12 month period leading up to each election have all resulted in a drop in gold prices just prior to the election.