Gold continues to be Wall Street's good old and reliable workhorse, in the sense that it maintains its role as the most sought after safe-haven asset. The next few months look like are going to be quite turbulent and eventful, with the US election looming nearer, and the global pandemic continuing to worsen relentlessly. So, the precious metal would most certainly play a pivotal role for investors in surviving these tough and unpredictable times ahead.
In a sense, little has changed in gold's fundamental outlook since our previous analysis of the asset. The coronavirus crisis and the uncertainty stemming from the Presidential race continue to be the most significant determinants for gold's underlying supply and demand dynamic. The only difference is that the impact of those two has become more pronounced over the last few weeks.
The market has already priced in a likely Joe Biden win, so the aftermath of the elections is unlikely to stir any major market surprises. However, if he does indeed win and then Donald Trump decides to dispute the results of the election in the US Supreme Court, this could prompt new rounds of uncertainty. Consequently, the global demand for gold is likely to be further bolstered.
|Short Term||Long Term||Net % Gains|
|20.70 USD||0||0||16.11 USD||
|Net % Gains|
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