Election years and the gold price

Changes in leadership usually cause uncertainty. This year, however, the easing of the central banks‘ gold policy is benefiting the markets. And this is likely to be the case regardless of who wins the US presidential election. In terms of equities, the current year is developing better than it has for decades. The S&P 500 had risen by a good 22% by the end of September. The renowned World Gold Council also took a close look at the gold price from 1989 to the end of August 2024. As a rule, the price of gold has risen significantly before presidential elections. The period between the beginning and end of a presidential term is also interesting. During Joe Biden’s term in office, the price of gold rose by 37 per cent, while under Donald Trump it rose by 53 per cent, and under Barack Obama it rose by 44 per cent. Under George W. Bush (2001), the price of the precious metal rose by as much as 215 per cent.

Events such as the 9/11 attacks, the pandemic, the war in Ukraine and the financial crisis also played a role, of course. There was a decline during the terms of office of Bill Clinton (-20 per cent) and George H. W. Bush (-19 per cent).

Overall, it can be seen that geopolitical disputes, of which there are currently more than enough, have more influence on the price of gold than presidential elections. Added to this is the central banks‘ hunger for gold, which is set to continue. Today, many analysts expect that regardless of the election outcome, the price of gold will exceed 3,000 US dollars per ounce by the end of the year. In this case, investments in gold companies should always be worthwhile. 

Calibre Mining – https://www.commodity-tv.com/ondemand/companies/profil/calibre-mining-corp/ – is a mid-tier gold producer specializing in North and South America. Exploration opportunities are being investigated in Canada, the USA and Nicaragua.

Fortuna Mining – https://www.commodity-tv.com/ondemand/companies/profil/fortuna-mining-inc/ – is also a successful gold and silver producer. The projects are located in Mexico, Peru, Burkina Faso, Argentina and the Ivory Coast. A gold project in Senegal is currently undergoing preliminary economic evaluation.

Current company information and press releases from Calibre Mining (- https://www.resource-capital.ch/en/companies/calibre-mining-corp/ -) and Fortuna Mining (- https://www.resource-capital.ch/en/companies/fortuna-mining-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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