Gold was enjoying another solid day of trading on Thursday jumping to a day high of $1,245 an ounce and bringing its gains for the year to 17%.
Following three down years, many factors have been driving gold’s resurgence in 2016:
Now, another reason for gold’s new shine can be added to the mix.
The Wall Street Journal – no less – is giving voice to the notion worries about Trump’s ascendancy in the US presidential race is pushing investors into the relative safe harbour of the gold market.
The paper quotes David Govett of London-based commodities broker Marex Spectron who “is one trader who thinks that Mr. Trump’s candidacy makes the precious metal a smart place to hide out for the next few months”:
“The mere thought would suggest a good opportunity to buy gold,” said Mr. Govett, who heads the firm’s precious-metals trading desk.
“Who knows what could happen should he be handed the keys to the White House,” said Mr. Govett.”
The Journal also give James Sutton, a London-based portfolio manager on the global natural resources equities team at J.P. Morgan Asset Management, which has $1.7 trillion in assets under management a hearing:
“If there’s any uncertainty regarding the U.S. election and the potential for a slightly off-center candidate, whether that be Sanders or Trump winning the election, then I can see a scenario where that’s bad for the dollar.”