Just 1 day before election night, we see gold trading at $1891.88 USD at 11:36 EST. But tomorrow this might all change. As the elections near, gold is expected to see increased volatility in the coming few days. But what will an election mean for gold value and why is it going to have such a strong impact?
Currently, Biden is seen as the favorite to win the presidential election according to RealClear Politics. He's currently leading by a spread of 6.5% over the last week and is the betting favorite at almost 2 to 1 odds. But regardless of who wins, both parties are expected to put forth a stimulus package that will help increase gold prices. Trump claimed that he will do so after he's "won the election" on Twitter. Meanwhile, Biden has an entire plan laid out on his website regarding his relief plan.
The only real threat to gold prices at the moment is if an effective vaccine would be created and distributed. While this would be great for the economy and everyone, it wouldn't be for gold. But at the moment, no country is near an effective vaccine. And with many clinical trials not expected to start until 2021, we're in for a long wait. Until then, gold will continue to stay strong and possibly even grow as the governments pour more funds and resources into combating this pandemic.