Gold Sets Fresh All-Time High and Pushes $2,800/oz Ahead of U.S. Election

 

Gold Sets Fresh All-Time High Before Controversial U.S. Election

(Bullion News Network) – In the last Friday before Election Day in the United States, gold set yet another all-time high. Uncertainty surrounding the contentious presidential race helped push gold within $10 of a historic new high at $2,800 per troy ounce. Voting day is next Tuesday, November 5th, and pollsters say that Vice President Kamala Harris and former President Donald Trump are virtually tied in the final days of what has been a historically divisive race. 

The next President of the United States will likely be decided by a small number of “swing states,” states that may support either candidate and carry enough electoral votes to potentially tip the election. Pennsylvania has been a particular focal point for both campaigns; Mr. Trump and Vice President Harris have both appeared in Pennsylvania multiple times since the beginning of the race. Other key states that will likely decide the outcome of this year’s presidential election include: 

• Arizona
• Georgia
• Michigan
• Nevada
• North Carolina
• Wisconsin

Together with Pennsylvania, these states offer a combined 90 electoral votes – enough to tip the election in favor of either candidate. Several of these states helped President Trump secure a surprising victory over Hillary Clinton in 2016, and President Biden’s wins in Michigan, Wisconsin, and Pennsylvania helped Democrats flip the White House again in 2020. With Mr. Trump and Ms. Harris virtually tied according to leading opinion polls in these swing states, the outcome of the 2024 election is anybody’s guess. 

Another day of muted gains for gold and silver. With the U.S. presidential election just eight days away, it looks like markets are bracing for impact.

The Fed will also meet next week, just two days after Election Day.

Read our analysis here: https://t.co/93tq6hXZXl

— Hero Bullion (@HeroBullion) October 28, 2024

Here’s How the Election is Driving Gold to New Heights

U.S. elections both directly and indirectly impact precious metal prices. In 2024, a slew of domestic and international stressors have made this election particularly important to the precious metals market. Wars in both Ukraine and the Middle East have propelled gold prices to new heights throughout the year, and the next president’s foreign policy will play a pivotal role in either resolving or inflaming tensions in conflict areas around the world. 

Economic policy will also directly influence gold and silver prices following the election of the next POTUS. Former President Donald Trump’s campaign has repeatedly emphasized high inflation rates during the Biden-Harris administration. Mr. Trump’s own proposal for a universal tariff on imported goods has been criticized by some economists, who believe that the policy would increase prices for consumers. 

This week, the upcoming election’s impact on the gold market likely hinges on uncertainty and fear-motivated buying. Investors tend to turn toward precious metals like gold and silver in order to hedge against uncertainty. Given the lengthy court battles that followed the 2020 U.S. presidential election, some investors are stocking up on safe haven assets to avoid stock market turmoil in the event of another contested outcome. 

Adding to the uncertainty is the unparalleled closeness of this race, which some pundits have called the tightest in nearly two decades. In both 2016 and 2020, pollsters had a general idea of which candidate they thought would win a week before Election Day – although polls underestimated Mr. Trump on both occasions. This year, neither Mr. Trump nor Ms. Harris have taken a decisive lead in the week leading up to voting. 

Uncertainty and anticipation have already impacted the gold market. The metal ended Wednesday within $10 of $2,800 per ounce and sits at the peak of yet another all-time high.