Tuesday, September 27, 2016

Following Trump's winning most polls after the first debate, sentiment continues to be long towards buying gold

Following last night's first debate, the internet is wild with discussion and propaganda over who won, and who lost in New York last night.  But with the majority of online polls showing Trump winning by a relatively large margin, sentiment for gold continues to remain very high due to his increased odds of a victory.

Ahead of the first US presidential debate on Monday, Citigroup issued a warning alert of investors rushing into gold as the Republican nominee Donald Trump’s chances of becoming president have surpassed the 40pc mark. 
Previously seen as an unlikely winning bet by the majority of market participants throughout most of his campaign timespan, Trump is now expected to capitalize on his economic reform agenda, attracting voters yearning for change. As the chances of economic shift rise with Trump’s ascend, you can never be too safe, investors reckoned, rendered gold poised for gains in value closer to the yearend. 
Trump’s victory in November would mean a sooner interest rate hike by the Federal Reserve, with subsequent hikes to follow shortly as the Trump administration would be primarily focused on achieving economic normality. Amid the expected rate hikes, the stock market is likely to retreat, along with the value of many assets across multiple sectors of the economy. Bond yields would rise, whilst the fixed-income value would slip, a notion amongst investors spreads. Buying gold seems, therefore, a viable solution to offset the upcoming risks. “Polls have started to tighten ahead of the US presidential election, and Citi has raised the probability of a Trump victory,” Citi said in a note. 
“We expect a Trump win would bring out higher volatility in gold and forex, which in turn should lead to higher volumes in other precious metals.” - Sputnik News
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