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How Do Election Results Affect Gold?

Commentaries & Views

Tuesday’s U.S. elections took place and the results were as expected; the House turned blue and Republicans added a couple of seats in the Senate. Gold had a very active night as well with a big rally on fear, sell-off on relief and now a rally towards the overnight highs on relief.

How do these results affect the price of gold? The simple answer is they don’t. Asset classes may react to the news, but they eventually go back to the patterns they were trading. This time will not be different.

Gold is still in the consolidation pattern, looking to break out to the upside. Gold is making another attempt to break above the $1,240 level, which we expect sooner than later. This morning’s weaker dollar may be enough to push gold through resistance; however, the bigger picture is gold breaks out, weak dollar or not.

Disclaimer: The views 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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.