Source: Bloomberg
One of the most intense American elections in modern history stimulates funds to influx assets, gold prices have soared, and many investors believe that gold prices will rise further.
The price of gold has soared to a record high this week, and it is expected to set the best annual performance since 1979.The global central bank and Chinese buyers initially promoted the rise in gold prices. However, as investors seek risk aversion before the US election vote next week, investors' demand for gold further expands.And no matter who wins in the US presidential election, the rise is likely to continue.
"In the period of uncertainty, especially when it is related to geopolitical issues, the market likes gold," said Patrick Fruzzetti, an investment group manager of Rose Advisors in New York."This is why you may want to hold gold before the US election."
Some observers said that the difference between the winning and defeat of the election will be so small that it will need the US Supreme Court to decide who to win.Others expressed doubts about the U.S. election, but the polls showed that the even is evenly mature to make many people have intense expectations for the results of the votes.
The worse than snow is that Trump popularized his allies that he would win a lot unless there was a fraud.This has laid foreshadowing for the long -term legal disputes in the case of the result of the election that is not conducive to the Republican Party, which may further fall into turbulence in the market.
Some investors have vigorously bet on Trump's victory and the Republican Party swept the White House and Congress.Transactions related to the agenda of protectionist policy boosted the US dollar, and the stronger dollar is usually not good for gold, because this makes gold more expensive to African investors.In fact, after Trump was elected in 2016, the price of gold has indeed fallen sharply.
However, this time, the fierce election brought much worried about more nervous than before. If the result is difficult to divide, investors may dismiss the betting of the US dollar and the stock market and rush to risk shelter assets.Spot gold trades nearly $ 2750 per ounce on Friday. The previously announced US employment data is lower than expected.
The results are uncertain
Robert Mullin, the investment portistor manager of
Marathon Resource Advisors, said that if it takes time to solve the problem of whose election win, the gold price will rise."If the election results are certain, then you may see that the risk situation in the market is weakened."
Michael Hsueh, an analyst at Deutsche Bank, said in a report that if Harris wins, the price of gold may be originally sold, but the decline will be short -lived.He said that the victory of Harris caused the decline in the US dollar to increase the purchasing power of China and India, and the prospect of slowing economic growth may also prompt the United States to accelerate interest rate cuts and boost gold prices.
In addition to the election itself, there is a key similarities between the two candidates that make the bulls bet on the gold will rise for a long time: both candidates have a huge expenditure plan, which will make the US public financeBe more tight.
"The market is very assured that no matter who wins, fiscal expenditure will continue," said in the Blue Edge Advisors in Singapore to help manage the Calvin Yeoh of Merlion Fund.For this reason, "Gold is the ark that everyone in the world wants to board now."
