Gold will be the winner in this year’s US election – Heraeus

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Editor’s Note: In minutes, discover our quick summary of the must-see news and expert opinions that have moved precious metals and financial markets. Register here!(Kitco News) – The gold market saw a lot of geopolitical turmoil ahead of the November 3 US election, but a precious metals company said it expects gold prices to stay strong supported because it will be an election like no other.

Gold managed to maintain critical support above $ 1,900 an ounce nearly a week after Democratic candidate Joe Biden and Republican candidate President Donald Trump clashed in a chaotic debate. Analysts at German firm Heraeus Precious Metals said pre-election uncertainty will continue to support gold prices in the near term.

« There is already great political and economic uncertainty in gold, but it could intensify as Election Day approaches, increasing gold’s appeal as a safe haven, ”analysts said. in a report released on Monday.

Citing The Economist’s electoral models, analysts said there is an 88% chance that Biden will win the election; however, because of the Electoral College, they added that Trump could still score a victory.

« In 2016, polls underestimated the level of support for Trump and showed Hillary Clinton a large lead until election night, ”analysts said.

However, whoever wins, the German firm said gold will continue to benefit. They noted that a Biden victory could move assets away from volatile stock markets towards more safe-haven assets like gold.

At the same time, Biden is also proposing a spending plan for an additional $ 7.3 trillion over the next decade.

« US government debt is already higher than US GDP and that will add to the growing pile. This could see an additional advantage for gold if it leads to a weaker US dollar, ”analysts said.

Meanwhile, if Trump is re-elected, the Republican president will still face an economy bordering on precariousness.

« Whatever the outcome in November, a weak macroeconomic environment in the United States will prevail in the near term, which supports gold, ”analysts said.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for any loss and / or damage resulting from the use of this publication.

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