Gold: Sell the Election, Buy the White House
15 November 2024
Precious metal prices remained in correction mode this week, with the gold price falling to USD $2,575 per troy ounce (oz). Silver has also been on the back foot, falling to USD $30.54oz, with the gold to silver ratio currently sitting at 84.
Month to date, the two precious metals have fallen by 7% (gold) and 9% (silver) in USD terms, with long-term precious metal investors adding to their holdings through this period.
The pullback in the sector, which began in earnest once the result from the just completed US Presidential election was assured, is mimicking the price action seen four years ago, when then Presidential candidate Donald Trump beat Hillary Clinton in the 2016 race to the White House.
On Tuesday November 8th 2016 (the date of the Trump vs Clinton election), gold was trading at USD $1,282oz. The precious metal would go on to fall by 12% in the weeks that followed, bottoming out at just over USD $1,120oz in late 2016.
From there it began to recover, with the gold price reaching USD $1,200oz by January 20th 2017, when Trump entered the White House for the first time.
Gold has gone on deliver returns of more than 100% in the years since.
Precious metal investors will be so lucky if history repeats!
Monthly Market Update
The ABC Bullion October Monthly Market Update is now available for download.
The report highlights:
Long-term performance trends in the precious metal market
How gold and silver compare to other asset classes
Key financial market indicators that drive price moves in precious metals
Investor positioning in the precious metal market
