Have we hit bottom?
(Kitco News) - With all the election turmoil going on in the U.S. I need to say that I have never been so happy to be Canadian.
I was just one of more than 73 million people who tuned in Tuesday night to watch the debates and I am also just one of the millions of people who were probably disappointed with what we saw. I don’t think I need to describe the political train wreck that was collectively witnessed by everyone; however, I would like to note that if you needed a reason for gold prices to push above $1,900 an ounce, you now have it.
This week’s rally on gold comes at an interesting time as Kitco’s Anna Golubova, reported mid-week that the gold market was on its way to its worst monthly performance in four years. The question investors are now asking is: have we hit bottom or is there more to come?
Bridgewater said that even after gold’s rally in the first half of the year, there is still plenty of potential for higher prices.
“Gold has rallied ~30% year-to-date against the dollar and a comparable amount against other developed world currencies, buoyed by fiscal and monetary stimulation of a magnitude unprecedented during peacetime,” the hedge fund said in the report. “These are classic reflationary dynamics that more likely than not are still in their early innings
Meanwhile, a lot of analysts I have talked to continue to warn that the political uncertainty in the U.S. will continue to support safe-haven assets like gold and silver. But it’s more than what happens on Nov. 3.
Many political pundits and analysts warn that because of the political divide in the U.S. it could take weeks before there is a definitive outcome. Prior to the debates, analysts at UBS were warning investors to buy gold ahead of what they expect will be a contested election.
Of course, investors shouldn’t expect the election chaos to end anytime soon after President Donald Trump announced that he had contracted COVID-19. It is reported that he is experiencing mild symptoms.
I do wish him and his family a quick recovery from the virus. Of course, now that the most powerful person in the world has attracted the virus, is anyone safe?
I do hope that this latest development will encourage people to wear masks, social distance and take other health precautions.
Nobody is alone in this fight against COVID-19. In Canada, we are starting to see a second wave of the virus, so now it is more important than ever that we protect each other. The best way we can do that is by wearing a mask and keeping our distance.
Have a great weekend and stay safe and healthy.