The gold price is set to be the winner this week, no matter who emerges victorious from the US Presidential Election.
The market is expecting a race to the safe haven commodity, with the gold price forecast to rise by as much as $200 if Republican candidate Donald Trump wins, and by $100 if his Democrat rival Hillary Clinton is elected.
Bron Sucheki of Monetary Metals told ABC: “Gold is a classic asset class that investors run to when there's any uncertainty. I think the US election sure meets the definition of uncertainty if ever there was one.
"The uncertainty isn't just about the election outcome, but even after the election, how will the new president deal with the potentially hostile Congress and whether they'll be able to get their policies through."
He predicted that the rush to buy gold would not just be from Western buyers but the traditional large bullion buying countries of China and India will also increase their spending on the precious metal.
This morning, (Monday 7 November), the gold price was £1,036.86 at 09:15, down from last week’s high of £1,062.01, which it hit on Wednesday (November 2). If the analysts are correct, there should be a rapid jump in the price as the market gets into its swing. It’s worth keeping an eye on gold’s value if you are looking to buy or sell today, to try to find the optimum moment to make your deal.
However, gold’s gains on the back of the US Election are predicted to continue after the drama of the election itself. Independent analyst Saul Eslake believes if Mr Trump is elected, the economic uncertainty will increase and is likely to lead to a drop in the value of the dollar and a rise in the value of safe haven gold.
