Election outcome should have minimal impact on gold price outlook
The election has not changed long-term fundamentals behind gold and silver owing to a divided Congress, said Neil Meader, director of gold and silver at Metals Focus.
“There was some initial expectations that if we’d seen the so-called Blue Wave, that there would be a much more expansive fiscal program coming through from the U.S. and that was implicitly seen as inflationary, which would have been pro-gold. But now that we have a Republican-controlled Senate, we may not see that fiscal push come through, and I think that has led to some cooling of enthusiasm,” Meader said.
Meader added that still, fiscal and monetary policies are expected to remain accommodative.