Us Election Effect On Gold Price

The next month it decreased by 1 8.

Us election effect on gold price. A high dollar value means a lower price for gold while a weaker dollar means a higher price for gold. The us presidential election takes place in under a month on november 3rd and many investors are wondering what impact the vote will have on the gold price as well as other precious metals. In the wake of the 2016 victory of president donald trump the price of gold dropped in november and december.

The effect of the election on the price of gold is a topic of passionate debate. In november 2016 the price went down 7 6. Historically gold has tended to rally in september of election years perhaps on the back of fiscal stimulus and political uncertainty before reversing to trade lower through the presidential inauguration the following january.

More broadly the price action in gold and silver has seen consistent patterns in the months around us elections. Election including potentially contested results could be under appreciated by precious metals markets citi analysts wrote in a quarterly commodities outlook. Uncertainty surrounding the november 3rd u s.

It s generally understood that the value of the us dollar correlates with the price of gold. Bush was re elected in 2004 the price of gold climbed about 7 in the month after he won and rose 4 8 overall that year. After barack obama was elected in 2008 the price of gold jumped 17 8 by the end of the year.