Gold price action 'agnostic' to who wins the election: TD Securities
(Kitco News) Gold's long-term performance is "agnostic" to which party wins the U.S. election on November 3, according to TD Securities. "Looking onto the horizon … the long gold trade's success is actually agnostic to the elected party," write commodity strategists at TD Securities. Either party will end up pushing some form of fiscal stimulus out, which is what gold needs to rise higher. "Barring a split government outcome, both administrations are likely to push through a large-scale a fiscal deal in no time that would help de-bottleneck the real rate suppression, lifting precious metals in the process," the strategists note. "Considering a Blue Wave would likely result in the largest package, Biden's election odds are increasingly likely to drive gold prices in the coming month." In the short-term, markets are focused on monitoring U.S. President Donald Trump's health. "The market's knee-jerk reaction may have buoyed gold prices as we identify signs of a flight-to-safety amid a risk-off move in markets," the strategists add.