US Election/Gold: There is an interesting contest between the current President Donald Trump and Joe Biden in the US presidential election. Trump has narrowed the vote count after falling behind in the initial trend. No one has achieved the magic figure of 270 so far. Currently, there is a stir in the financial markets and the commodity market in the midst of this election. While there was a historic rally in the stock markets in the US yesterday, gold and silver are seen declining today. US Election and has a special relationship with gold and silver. The question arises as to what effect will Trump or Biden’s victory have on gold. Experts say that whether Trump wins or Biden, gold is seen increasing in both the conditions.
Gold and silver fall today
Gold has slipped below $ 1,900 on Comex. Gold on MCX is close to the level of 51,000 rupees. At the same time, silver has slipped below Rs 62,000 on MCX. Comix is trading with a fall in silver. The dollar looks strong before the US election results. The dollar index is seen at an upper level of about 5 months. Due to which pressure has been put on gold and silver.
Gold accelerates after winning both
Ajay Kedia, director of Kedia Advisory, says that Donald Trump should win the presidential election or Joe Biden, gold is going to gain momentum. There is a big reason behind this. He says that if Biden wins, the equity market will crash initially. In fact, there will be uncertainty about whatever economic plans are going on in the country or on which further work is to be done. The new government can change the existing policies for the economy. At the same time, new equations can also be formed at the global level, which will put the initial pressure on the big companies of many sectors. In this case, once again investment in gold will be faster.
The second condition is that Trump wins. If this happens, it is positive for the equity market. But it is worth noting that Trump’s previous tenure was controversial. Due to which, during his tenure, there was an unprecedented boom in gold. This time too, something similar seems to be happening.
Gold Price Today: Gold rises by Rs 111, know how much the price of 10 grams
This is also factor in Biden’s victory
Experts believe that if Biden wins, he can initially increase spending for his policies. It will also include relief work. This will affect the dollar index and weaken the dollar. Gold prices will rise due to the weakening of the dollar. On the other hand, many other factors are seen increasing in gold at the global level. For example, the rising case of Covid-19, weakness in the dollar, fear of a fall in the equity market after high valuation, geopolitical tension.
US elections and returns in gold
Since 1972: Elections and Returns
Year presidential party returns in gold
1972 Risard Nixon Republican 48.72%
1976 James Carter Democrat-4.06%
1980 Ronald Reagan Republican 12.50%
1984 Ronald Reagan Republican 19.00%
1988 JW Bush Republican-15.69%
1992 Bill Clinton Democrat – 5.80%
1996 Bill Clinton Democrat -4.43%
2000 JW Bush Republican -6.26%
2004 JW Bush Republican 4.97%
2008 Barack Obama Democrats 3.41%
2012 Barack Obama Democrats 5.68%
2016 Donald Trump Republican 8.63%
2020 ….. …. 26.62%