The thesis behind gold getting a boost from a possible Trump victory revolves around the idea that Trump being the next president is widely viewed as negative for other asset classes, including bonds and equities. That leaves gold and safe-haven currencies as potential beneficiaries should Trump pull off the upset.
“The markets and polls believe Clinton will win and that is priced into markets in the same way that a ‘Bremain’ was priced into markets prior to the ‘Brexit’ vote,” reports ETF Daily News.
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“Some say a Trump win would be a deeply negative event for equities. After all, stocks dislike uncertainty, and a Trump victory would leave much in the air about economically important issues such as trade policy and monetary policy,” according to CNBC.
The World Gold Council expects jewelry demand to increase in the second half of the year, notably in areas like India where key festivals and fourth-quarter holiday season in the West, could provide further support.
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SPDR Gold Shares (NYSEArca: GLD)
Tom Lydon’s clients own shares of GLD.