SMM News: the drama of the US election has officially begun, with the price of gold falling from above 1910 US dollars / ounce, testing the support of the 1900 US dollars / ounce mark.
Of course, the election of either Democratic candidate Joe Biden or Republican candidate Donald Trump will not be bad news for gold.
James Rasteh, chief investment officer of Coast Capital, said that no matter who is elected, the United States will have the next round of stimulus programs, so gold will benefit.
"the large-scale printing of money in the United States will ultimately be a big boost to gold."
Rasteh points out that no matter who is elected as the next president of the United States, there will not be much difference between US fiscal and monetary policy. Many of the seeming differences are imaginary and do not appear in reality.
As the US economy continues to be hit hard by the epidemic, the whole market is waiting for a new round of stimulus as soon as the election dust settles.
America's huge fiscal deficit and large amounts of liquidity injected into the market are good for gold.
The biggest risk of this US election is that the result is delayed or the vote count is controversial, according to (TD Securities) of TD Securities.
Of course, if Democratic candidate Joe Biden wins, it will be a little more driving force than gold.
"for gold bulls, a big risk is that long positions in the market are still at high levels, which means that it may be easy to squeeze positions."
However, the bank said that investment demand for gold will continue to grow after the uncertainty of the US election dissipates, which will continue to push gold prices higher in the long run.
