[ad_1]
?? The outcome of the US elections is still unclear
?? Gold probably independent of the electoral result
?? Price of gold as a profiteer at all levels
advertising
Trade oil, gold, all commodities with leverage (up to 30)
Trade commodities with high leverage and tight spreads. Can you with only 100.00 ?? start trading to benefit from the € 3,000 capital effect!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money.
The price of gold has risen significantly so far this year. After the crown-related crash in March, when investors liquidated almost all types of investments in a panic, things have been steadily rising: over the year there has been an increase of around 25%. Uncertainty over the outcome of the US elections had recently provided further support for the precious metal price – now the question arises as to how the price front will develop after the American elections It will go on.
The uncertainty is not over yet
Even a day after the official election date, it is still unclear who in the United States will take over the helm of the White House in the next four years. But the future direction of the U.S. government could also have an impact on the gold price trend, because the administration – if under Donald Trump or Joe Biden – will play a pivotal role in shaping the global economic picture.
It may take some time before a clear result is achieved, because current President Trump has already announced that he will take legal action. According to experts, this could be accompanied by strong volatile trends in the stock market. Usually, greater uncertainty on the part of investors means that many stock market participants are acting rather cautiously, but at the same time are looking for safe havens. In the past, gold as a fairly stable investment has often proved such a haven, so that over time until all votes are counted and an official end result is determined in the US election, a rise in the price of gold is likely. .
Gold could be a big profit
But even if the end result is finally certain: it is probably far less clear than expected in advance by election observers – the election result is far more rigorous than market participants had hoped.
This should have consequences for Joe Biden’s first term, but also for Donald Trump’s second term. Because the United States of America remains deeply divided and the future president of the United States risks having to face four difficult years.
Market participants are hoping for at least a more moderate execution of official affairs from Joe Biden, the danger of political risk and international tensions, which usually also cause nervousness in financial markets, should be significantly lower under the Democratic president than in the case of a second term of Donald Trump. The rally in stocks over the past four years has shown that Trump’s policy does not necessarily have to go hand in hand with weak equity markets and therefore with a possible rise in the price of gold.
For the price of gold, the winner doesn’t matter
Against the backdrop of the COVID-19 pandemic and various other secondary political and economic theaters of war, gold could remain an important focus for many investors. Historically, however, there is no clear connection between the trend in the price of gold and a particular party in power in the United States, wrote Saida Litosh, manager for precious metals analysis at Refinitiv. With a second term in office for Trump, there will come a “turbulent and polarizing” time, which in turn will be associated with increased volatility and uncertainty.
Against the backdrop of Trump’s threat to make his way through the highest court in the United States, Biden’s election will also be fraught with great uncertainty, as his possible mandate would likely always be overshadowed by the stigma of possible election fraud.
As for the government program itself, both candidates should continue to support the quantitative easing path – which, too, is likely to have a positive impact on the price of gold.
So while the race for the White House remains open, gold has already been chosen as the winner. Regardless of the actual election outcome, gold will benefit from the uncertainty of the markets, especially on the way to a reliable outcome. According to experts, there is further upside potential for the next few years, which Fosterville South Exploration chief Bryan Slusartschuk even calls designated “explosive”.
Editing of Finanzen.net
More news on the price of gold
Image sources: Bulent camci / Shutterstock.com, Nomad_Soul / Shutterstock.com
Source link
