Well, you survived it. Months of campaign ads, haranguing, debating, and general buffoonery are finally over. Now we get back to the real business of our elected leaders – vying for 10-second spots on the evening news, suing each other, and trying to buy your vote with your kids’ money.
For gold, in the near term, the effect seems to be nothing. New York morning gold is down 3 USD, not quite rounding error against a price of 1230. Time will tell if our prediction yesterday will come true, but so far so good.
Here at the Gold Enthusiast, we believe the two primary drivers of gold price are the value of the local currency and geopolitical events. Does the morning news say anything applicable about those two? Turns out the answer is Yes.
On the US Dollar front, the Dollar appears to be losing ground post-election. Most probably that’s due to investors thinking that 2 more years of basic gridlock in Washington DC will mean difficult times ahead for pro-business policies. And they’re probably right.