In today’s brief article, I am going to discuss various possibilities for how gold and silver prices react to the 2020 US Presidential election outcome. If Trump is polling ahead in early results, then gold and silver prices should continue their rebound higher in the immediate term. However, if Biden is polling ahead in early results, then I believe gold and silver prices should pull back in price from their current respective futures prices for the front month of $1900.04 and $24.35 per ounce (as I type this sentence). Although some may believe that my assessment is contrary to expectations, as a Biden win has been typically viewed as bad for US stock markets (and consequently positive for gold and silver prices), though such a view may be accurate for the intermediate term, my prognostication for gold and silver prices is for the immediate term. In the immediate term, markets tend to dislike change and uncertainty, so a change in US President should be negative in the immediate term for gold and silver asset prices. Furthermore, if the poll results shift as more and more results are compiled, with Trump taking an early lead and Biden coming on late, then such results should be immediate term positive and then negative, for gold and silver prices. And vice versa.
Finally, if the race is too close to call on the evening of 3 November/ morning of 4 November, or if the results are disputed, then I believe such an outcome would also be immediate term negative for gold and silver prices, with gold retreating at least $30 to $1870 a troy ounce or lower in futures markets and silver possibly retreating to $22 or lower. However, no matter who wins the POTUS election, in the intermediate to long term, due to the enormous mess created by Central Bankers worldwide with their ZIRP policies and relentless creation of trillions of fiat currencies out of nothing since 2008, the trend for gold and silver prices should be agnostic towards who sits in office in the White House and move higher.
Admittedly, it is always quite risky to take a stab at how asset prices will react to US election outcomes as a long list of unknowns can quite radically create enhance asset price volatility in regard to the election outcome. However, as an example of the non-political based financial analysis my skwealthacademy patrons receive every single week (at the $5 a week or higher membership level), please reference this post, as I provide proof in a publicly published and documented post on the 9 of October of five out of six investment tips that all yielded greater than 50% profits in three weeks. Though these were tips that I provide in a public forum, the investment opportunities I provide to patrons are exclusive to patrons and are never discussed anywhere publicly. If you wish to learn more about skwealthacademy patron benefits, just click here.