Historically, gold has been considered a safe-haven asset during political uncertainties like elections. The report indicates that gold prices tend to fluctuate around US elections due to changes in investor sentiment and market dynamics.
The study highlights that during election years, geopolitical uncertainties and potential policy shifts can significantly influence gold prices. Investors often seek gold as a hedge against economic instability, leading to increased demand and rising prices. This trend has been evident across multiple election cycles, with notable price movements tied to polling data, election results, and anticipated policy changes.
The report also considers the broader economic environment, pointing out that factors such as inflation, interest rates, and fiscal policies from new administrations can greatly impact gold's attractiveness. Particularly, expansive fiscal policies or increased government spending may heighten inflation concerns, thereby boosting gold’s appeal as an investment.
