As the 2016 presidential race winds down, polls that seemingly change every day regarding who is in the lead, Clinton or Trump, are driving investors to seek safe haven investments. As gold hits a one-month high amid investor uneasiness over the potential economic impact of a Clinton or Trump presidency, there is increased interest in allocations of precious metals to a Gold IRA or Silver IRA.
NBC News reported that the stock markets in Europe, Asia and America took a serious dive in October due to investor uncertainty. However, despite anxieties over the elections and how one candidate versus the other could affect stocks, Gold remained at an all-time high. According to CNBC, Gold prices briefly hit highest level at $1309.10 an ounce for the first time since October 4th, after the Federal Reserve announced it left interest rates unchanged on Wednesday.
The logic behind this trend is that investors look at gold as a stable investment. NBC reported, that while “…the dollar and oil fell… safe-haven assets such as gold and the Swiss franc rose as investors were rattled by signs the U.S. presidential race was tightening just days before the vote.”
“If Donald Trump is elected next week, we think gold can go anywhere shy of $1,400,” Wayne Gordon, executive director for commodities and foreign exchange at UBS Group AG’s wealth-management unit, said to Bloomberg. “If Hillary Clinton is elected, we think gold can probably fall by $20, $30. So the clear skew in this trade is to the upside.”
The wavering polls depicting Clinton in the lead, changed suddenly with Trump getting a push from battle-ground states. NBC reported that Barclays strategists estimate that a rise in Trump’s polling odds to 50 percent could see the S&P 500 fall 4-5 percent, and potentially as much as 10-11 percent if he wins.
“Trump is seen as narrowing the gap with Clinton. Markets … have succumbed to a risk-off pattern in recent days as a result,” Rabobank analysts wrote in a note to clients on Wednesday, as reported by NBC.
As the uncertainty of the election affects the economies around the world, experts point to other trends that are pushing precious metals up. Interest rates is one such factor as gold is highly sensitive to rising rates, according to CNBC.
Silver is also being affected by the election anxieties and interest rates. Gold’s erstwhile cousin slipped 0.7 percent, the first loss since Oct. 26. Silver gained to $18.7415 an ounce, the highest since Oct. 4, reported Bloomberg.