Gold is at a steep price .... regardless of who wins the election, it will continue to rise.
Gold prices benefit from US election uncertainty, disputed result will prevent selling – TD Securities’ Ghali– Even as central bank buying appears to be easing, uncertainty surrounding the upcoming U.S. election will likely keep investors from selling their gold, and a disputed outcome could extend and magnify the yellow metal’s safe-haven bid, according to TD Securities’ Senior Commodity Strategist Daniel Ghali.
In an interview on Monday, Ghali said even as some of the drivers in the gold market are shifting, there’s still plenty of room for allocations to grow, and geopolitical uncertainty in the United States and abroad will put a firm floor beneath record-high prices.
“In a medium-term outlook, what's interesting about the ongoing rally in gold is that really anywhere you look, you can't find much evidence of substantial inflows heading into gold,” Ghali said. “Some of the largest gold investors, according to our analytics, are holding on to an extreme amount of gold relative to history. Elsewhere, physical markets have actually come to a standstill. I think what the gold market is actually telling us is that there is a lot of anxiety surrounding the upcoming U.S. election season.”
“Perhaps it's not a story of a substantial amount heading into gold,” he added, “but rather a story that it takes a brave soul to sell gold into this specific election.”
Ghali agreed that market participants are reluctant to sell in an environment with such strong upward momentum, and pointed to various factors supporting the yellow metal at record highs.
“There's a lot of reasons to buy gold,” he told Bloomberg. “Geopolitical uncertainty, particularly in the Middle East, is probably at its highest levels since the Gulf War. The Fed has just entered into an easing cycle… to be clear, historically this has been associated with good returns in gold on several months’ basis, but at the same time there is a lot of evidence that investors have actually front-run all of this and have positioned themselves already for the ongoing outlook.”...............
https://www.kitco.com/news/article/2024-10-22/gold-prices-benefit-us-election-uncertainty-disputed-result-will-prevent
