Yes, the “Presidential” Debate last Tuesday night was a dumpster fire, that is one thing everyone seems to agree on. However, the political uncertainty that has been ramping up again lately is good for precious metal prices, as the new wave of political volatility surrounding the election has some analysts becoming quite bullish on bullion again. We found some news and commentary for you that backs this—one report forecasts another gold surge, and another is predicting a new record high for gold by the end of this year. Also, political tensions are paving the way for more stock market instability.

Let’s dig in…

Commentary
Gold May Surge Again Soon—Here’s Why

The Fed Vice Chair said publicly that the Federal Reserve will not consider raising interest rates until inflation reaches 2 percent. As the Fed stays true to their word, gold prices continue to fall. So, what’s going on here? Over the past week, several Fed officials spoke publicly with the purpose of convincing investors that their new policy strategy would be positive for the economy. Powell himself testified three times before Congress. However, the most interesting remarks were delivered by Richard Clarida, Fed Vice-Chair. On Wednesday, he told Bloomberg Television that…

Latest News
These are the World’s Top Gold Mines [INFOGRAPHIC]

Investors are getting worried that the gold market has reached its peak after the price of the yellow metal soared to a record high last month. With the U.S. economy in a recession since February, investors continue to hedge against the volatility, which is why the price went over $2K per ounce for the first time in history (in August.) The ugly political climate has investors also feeling uncertain about the economy, and this is another reason demand for gold is rising again. USB recently advised its clients to buy safe-haven assets like gold in case there is a…

Stock Market
First Trump-Biden Debate Debacle Paves Way for Market Volatility

A political dumpster fire during the first presidential debate night paves the way for a rougher than normal patch for the stock market in the lead-up to the election. After a raucous, backyard brawl of a shouting match Tuesday night between President Donald Trump and challenger and former Vice President Joe Biden, stock futures fell sharply across the board on Wednesday. Dow Jones Industrial Average futures (YM=F) dropped more than 200 points at one point, while selling pressure extended to the S&P 500 (ES=F) and Nasdaq Composite (NQ=F). Up and down Wall Street the mood is that the debate calls into question the timing of when the election may be decided, the polarized nature in the country right now and whether a new fiscal relief plan could get passed amid such a debacle of an evening. In other words, here comes a new spate of market volatility. “Futures are lower…

Latest News
Lawsuit Accusing J.P. Morgan of Manipulating Silver Futures Market Settles for Undisclosed Amount

A lawsuit filed by hedge fund manager Daniel Shak and two commodity traders against J.P. Morgan Chase had been in court for months—until Wednesday when the suit was quietly settled. The lawsuit accused the financial firm of “spoofing” trades in the precious metals market. The three plaintiffs had accused J. P. Morgan of manipulating the silver futures market from 2010 through 2011 through spoofing trades. The three claimed they lost tens of millions of dollars as a result of the actions of J.P. Morgan traders.

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Commentary
Not Owning Gold is a “Major Mistake” According to Jim Cramer

So, should investors consider safe havens like gold ahead of the election? Here's what Jim Cramer had to say. WATCH THE SHORT VIDEO OF CRAMER

Commentary
Gold Price Could Hit New High by End of 2020, According to Citigroup

According to Citigroup, gold could hit a new record before the year-end aided in part by the risks surrounding the U.S. presidential election. Analysts including Aakash Doshi said in a quarterly commodities outlook that uncertainty over election results could “be under-appreciated by precious metal markets.” Bloomberg notes the bank implies a surge of more than $200 for bullion futures from current levels. Even though gold is trading lower, that doesn’t mean the rally is over, writes Bloomberg’s Eddie van der Walt. Gold’s move that started below $1,230 in 2018 has been filled with pauses. Gold is trading at the lower end of its pennant-range and the “path of least resistance is higher.” Bullion hit its new record high just last month above $2,075 due to global stimulus, negative real rates and a weaker dollar. SEE THE COMPLETE REPORT ON THIS FORECAST, INCLUDING GOLD’S STRENGTHS, WEAKNESSES, AND THREATS

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