Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Gold Gets $1,500 Vote this Presidential Election

  by    0   1

Many political and social upheavals this year have contributed to gold’s continued bullish run. From the Fed’s quarterly passes on rate hikes to Britain’s exit from the EU, the year’s turmoil has helped keep the yellow metal at a 25% increase for 2016.

Silhouettes standing in line behind American flag

The upcoming presidential election may prove to be one of the biggest unknowns that keep gold prices headed north. DBS Group Holdings Ltd.’s foreign exchange strategist, Benjamin Wong stated:

The market has yet to deal with the political uncertainty going into the Nov. 8 presidential election … We remain bullish and gold carries an overweight rating.”

To their credit, DBS Group Holdings Ltd. called gold’s rally this year. Last October, the fund bet on gold gaining in 2016 based on its prediction the Fed would raise rates very slowly. Recently, it’s been actively advising investors to buy during any downturns in the price of gold.

According to Bloomberg, Bank of America Merrill Lynch also “listed the US vote among factors that may lift bullion to $1,500 over the course of 12 months.” Wong agrees, stating, “Any dips to $1,296 to $1,300 would be opportunities to accumulate.”

Long-term interest rates are sure to remain steady or unchanged for the remainder of the year, or at least until after the election. Pricing in federal funds futures contracts reveal “investors see only an 8% probability of a rise in July, while the odds of a move by December are at 44%.”

Of course, Peter Schiff has repeatedly stated the Fed is bluffing a rate increase.  In fact, he believes it’s more likely we see a rate cut than a rate increase. Negative rates aren’t off the table either, which would drive many more to retain their wealth through gold.

Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, said in an interview with Bloomberg Television Canada:

The next few weeks, as the political debate heats up in the US, the support for gold is going to increase.”

Within the political and social spheres, a lot of unknowns and fears about the future still exist. From Brexit to the recent coup attempt in Turkey, a worldwide milieu of unpredictability and instability are indicating one direction for gold: up. November’s coming quick. Take a few minutes to look into buying gold and silver, the most solid foundation for your portfolio.

 

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 

READ MORE →

World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]

READ MORE →

VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 

READ MORE →

Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now