Daily Gold Market Report

Election Year Surge
How Political Changes Could Boost Gold Prices

(USAGOLD – 1/9/2024) Gold prices are moderately higher and silver near steady in early trading Tuesday. Gold is trading at $2036.40, up $8.33. Silver is trading at $23.09, down 2 cents. Heraeus’ recent Precious Appraisal discusses the potential positive impact of global elections on gold prices, particularly focusing on the US and India. The US faces a potential recession, and the Federal Reserve might cut rates in response, possibly weakening the dollar and boosting gold prices. Over 50% of the world’s population will participate in elections in 76 countries this year, significantly influencing gold demand. The US, undergoing a presidential election, and India, with its price-sensitive gold market, are key players.

“The gold price tends to move higher ahead of US elections. Since 2000, gold has moved 3.14% higher in the three months leading up to an election month. By comparison, the average change in the gold price over any given three-month period is just +1.8%,” Heraeus reports. The technology group also highlights that economic policy uncertainty, particularly with potential changes in the US administration, could further elevate gold prices in 2024.