Gold price to rally regardless of who is elected President

Gold is likely to go much higher no matter who is elected the next president. The US fiscal cliff is likely to "support gold at these levels and lead to higher gold prices in the coming weeks," according to the experts at GoldCore. Gold may experience short-term weakness, but it will see higher prices in the long run.

By Emma Wall
3:26PM GMT 31 Oct 2012
The Telegraph

Gold is likely to go much higher in the course of the 45th President's four year term – whether there is a President Obama or a President Romney, according to analytics firm GoldCore.

In its latest newsletter, GoldCore said that the US fiscal cliff, involving steep government spending cuts and tax hikes due in January, is likely to "support gold at these levels and lead to higher gold prices in the coming weeks".

Depending on which of the candidates is elected as US President, the gold price is predicted to experience short-term weakness, but over the long term, GoldCore expected that monetary challenges facing the Fed and the White House would lead to the gold price increasing.

The external macro environment also supports an increase in the gold price, said GoldCore, which is currently valued at $1,724/ounce.

"Gold will not suffer when there is a change and a move away from ultra, ultra loose monetary policies. As was seen in 1980, gold’s secular bull market is likely to end if the Federal Reserve again achieves positive real interest rates," said an analyst.

James Steel, analyst at HSBC Securities said that gold prices tend to appreciate more rapidly under Democratic presidents.

In a report entitled US Elections and Gold he said: "The more satisfied the public appears to be with the direction of the nation, the less likely gold is to rally. High Presidential disapproval ratings have been likely to support gold prices, and improvements in presidential approval ratings have weighed on gold prices."

The HSBC report also found that gold tends to rally during periods of foreign entanglement and conflict, regardless of which party is in power.

To see original article CLICK HERE

Follow Us

Share Page

Login

Get access to the latest trading information, tools to help your investing, and much more!

Login   Sign Up

Search

Weekly Charts

Current Spot Prices

Gold$1201.42
Silver$16.44
Platinum$1227.20

Special Offers

 
 
© 2012 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Logo are trademarks of Swiss America Trading Corp.
Where did you hear about us?
Roger HedgecockRay Lucia
Pat BooneMichael Savage
Bill CunninghamOther
iHeart Radio/Rush Limbaugh
×