Well, in your Gold Enthusiast’s memory, US elections have done little to affect the current trend of gold (GLD) prices. Possibly because the US is seen as relatively stable compared to most countries, with a form of government that guarantees change will be difficult and encouraging to people who keep getting up in the morning and going to work. Yes, the election will probably affect the price of gold in the short term. If the Republicans don’t lose too much ground in the US House and US Senate, we’ll end up right back where we were yesterday, and the struggle will continue. No change means no change, after all.
If the Democrats take significant control of the House or Senate, the fight will be on. The US will become less stable and less able to project a clear voice to the rest of the world. There are countries out there who would appreciate an easy opportunity to grow in stature (I’m looking at you, China and Russia). Such an outcome would likely be positive for the price of gold, although probably not by much in the short term. Rather it would probably be another support under gold prices, nudging them back up toward resistance at 1245.
Whatever happens, let’s all keep in mind that the worst possible outcome would be a deeply divided United States that loses the ability to work together to (a)run a world-leading country, and (b)compromise to solve real problems. Such as an out-of-control deficit, declining middle class, and starving children.
Make the time to vote today. Your vote is important. And as the wise man said, If you don’t vote you can’t bitch.
Sincerely, The Gold Enthusiast
DISCLAIMER: No specific security was mentioned in this article. The author is long the gold mining sector through a small portfolio of ETFs and specific mining stocks. The author does intend to vote today, exercising that most important power granted to the US citizen.