trump gold prices

Analyst: Trump’s Victory Will Drive Global Gold Prices Up
Diamonds watch (Source: Fotolia)

Analyst: Trump’s Victory Will Drive Global Gold Prices Up

Physical demand for gold remains low and worrisome: according to markets analyst Thomson Reuters GFMS, quoted in a piece in Mining Weekly, demand for gold remained at “pitiful levels” for the third successive quarter, down 30% year-on-year in the three months to September 30.

Diamonds watch (Source: Fotolia)

Gold watches (Source: Fotolia)

The survey also pointed out that the gold market’s attention had shifted during the past quarter from Brexit to the US presidential election. “A Donald Trump victory could spark a rally to $1,400 – and maybe even to $1,500, in our view – while a win for Hillary Clinton would likely see prices ebb lower”, the analysts noted.

As a result of the decreased demand, jewelry fabrication was down 27% year-on-year at 409 tons in the third quarter. The two largest markets, India and China, saw yearly jewelry consumption down 41% and 27% respectively, despite an improvement in quarter-on-quarter demand.

As for the future, the firm predicts that gold is set to stay well above last year’s price lows as it continues to “comfortably” exceed $1,200/oz, with a potential low of $1,240/oz”.

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