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Kamala Harris or Donald J. Trump? Prediction: Gold Wins

Kamala Harris or Donald J. Trump? Prediction: Gold Wins

October 28, 20241680 view(s)

Gold prices currently sit at $2,750 an ounce this Monday morning, up slightly from $2,740 at the beginning of last week. 

 

On Saturday, Israel did finally retaliate against Iran, hitting a few military targets rather than Iranian oil and nuclear facilities. The operation was much less severe than some experts had expected, and the geopolitical climate in the Middle East seems to be cooling.

 

Gold prices have shown remarkable resilience despite the 10-year U.S. Treasury bond yields rising for the second consecutive week at 4.25 percent. Investors' confidence in gold is evident as they continue to buy the dips with solid support above a $2,700 per ounce floor.


The upcoming Federal Reserve meeting on November 7 for another interest rate decision is a significant event that investors should be prepared for. Before this crucial interest rate announcement, several employment reports, 3rd Quarter GDP, and a monthly Personal Consumption Expenditure (PCE) report will be considered, potentially influencing the interest rate decision by the Federal Reserve.

 

The United States Presidential Election on November 5, just two days before the Federal Reserve meeting, is a significant event that could impact gold prices. Proposed policies from Kamala Harris and Donald Trump include plans that could increase inflation without a straightforward way to pay the national debt. Gold investment will be the consistent strategy against dollar devaluation, regardless of who is in the White House.

 


Potential Market-Moving Events

Tuesday: Job Openings

Wednesday: Q3 GDP, ADP Employment and *Bank of Japan Interest Rate Decision

Thursday: PCE, Initial Jobless Claims

Friday: U.S. Employment Rate and Hourly Wages

 

*In early August, the Bank of Japan raised interest rates as the U.S. Federal Reserve was preparing to decrease interest rates. The Carry Trade Unwind caused a significant stock market sell-off. In September, the Fed decreased our rates by 50 basis points - watch for further rate increases by the Bank of Japan.


Last week, Russia hosted the BRIC nations in Kazan for an annual summit. A popular topic was a proposed BRICS digital currency backed partially with gold. There are still many obstacles to launching the CBDC, but it could add to de-dollarization if it happened. Gold is the ultimate hedge to de-dollarization, as we covered on a recent webinar. 

 

 

The Federal Reserve will meet for an interest rate decision on November 6th and 7th. The U.S. Presidential election is on November 5. We invite you to our next webinar, "How will the 47th President May Affect Gold Prices?."

 

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