US election dominant short-term factor for Gold

UNITED STATES November 07 2016 7:29 PM

NEW YORK (Scrap Register): Much of the focus in the gold market remains on the U.S. presidential election, said analysts. Voters go to the polls on Tuesday. 

“The U.S. presidential elections will remain the dominant topic on the gold market for the time being,” according to a Monday commodities report from Commerzbank. “If (Democrat) Hillary Clinton were to come out on top, the gold price would probably continue to fall as a Fed rate hike in December would then be fully priced in.” 

Research late Friday suggested a Clinton victory could mean gold sells off to $1,225-$1,250 an ounce and then consolidates. Meanwhile, the bank says, a win by Republican Donald Trump could mean a knee-jerk rally to the $1,375-$1,400 area. 

“Similar to post-Brexit trading, we expect voles to tick higher and for asset market drawdowns to ensue, prompting a bid for gold irrespective of near term USD moves,” Citi added.