Gold may rise again and hit a new high after the US election.

SMM Network News at present, the attention of the whole market has turned to the upcoming US election. (TD Securities) of TD Securities believes that the biggest risk of the whole market this autumn is the controversial outcome of the US election, and all assets, including gold, may sell off.

But at the same time, the agency said that once the new candidates are confirmed, the price of gold is likely to hit a new high.

"the market is full of uncertainty before the election, but once the new US president confirms and takes office, then these market instability will dissipate."

TD Securities believes that investors now hold a lot of cash, so there is plenty of room to increase their holdings of commodities, including gold.

The bank expects gold prices to rise to $2100 an ounce next year, and massive government spending will be necessary in the coming years, no matter who becomes president of the United States.

"America's record debt and deficit, its monetization and the Fed's extremely low interest rates all suggest that gold will continue to rise once the new US president takes office and begins administration early next year."

The bank believes that the next huge fiscal spending items in the United States, which can reach $5 trillion over the next two years, coupled with low interest rates and a weaker dollar, will push gold prices to a new record.

However, as far as both parties in the United States are concerned, the Democratic Party of the United States may have more spending, which will push up the gold price even more.

"We think the Democratic Party of the United States will be more inclined to extra spending and monetary policy stimulus when it comes to power, which is better for gold. If elected, the Democratic Party may even change the Fed bill to promote monetization and support additional government debt. "

The bank expects silver to rise to $30 an ounce next year. With the current gold / silver price around 78, silver is very cheap relative to gold.

For the general election, the biggest concern of the whole market is that the losing party does not accept the result of the defeat and chooses to challenge the number of votes, which means that the result of the election will take some time to come out.

"Market uncertainty will prompt investors to flock to cash in search of risk aversion."

In addition, if the election result is uncertain, it means that there is more risk of protest in the United States, more assets will be sold off, including gold and crude oil prices, are likely to be significantly revised.

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