GOLD 0.51% $1,391.7 gold futures

gold, page-85908

  1. 44,246 Posts.
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    I have no idea how market participants will react to a Trump or Biden win. Coin flip.

    Well here we are on 22 September and we have the most devisive, explosive, chaotic US election season ahead of us, with the waters well and truly muddied by postal ballots and COVID-19.

    I note in your post that you devote very little text to the election, when the reality is that in this world where Brexit, Trump's Presidency, COVID-19 global pandemic etc are all possible, only a fool would say that the US election is going to be some neatly packaged event with market particpants then having to make a call on how they feel about a Biden Presidency, or Trump's second term. The likely scenario is that we are going to have some very messy and unprecendented outcome, and it may take weeks or months to determine a winner due to postal ballots and claims and counter-claims re electoral fraud. Why should anyone who has been paying attention be surprised.....but it will be a minority, including 'Goldbugs' who are not caught unawares.

    The sell-off today was triggered by fears that the 'stimulus' wasn't coming,or wasn't coming fast enough. So Gold would sell off in that scenario, as markets and Gold do well on the methamphetamine hit of stimulus & moeny printing. Any more bouts of selling on US equity markets & you will certainly see more stimulus and money printing - of that there is no doubt whatsoever. 'They' only know one way and are not going to change take now.

    But whether it is election season chaos (triggering safe haven demand) or more stimulus and money printing (stoking more fears about currency debasement and eventual hyperinflation) you'd have to have the blinkers firmly on not to see where the wind is going to come from that is going to fill Golds sails yet again.
    No, the US economy is not fixed.
    No, 'they' are not going to stop with the trillions in stimulus and the money printing.
    No, the US election is not going to be a 'walk in the park'.
    Grab some popcorn as it will be quite a show.
    Last edited by Crom Valen: 22/09/20
 
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