Gold Prices Not Likely to be Impacted by Midterm Election Results

SEATTLE (Scrap Monster): The Gold Market Commentary by the World Gold Council (WGC) noted that the results of the U.S. midterm elections are unlikely to have any meaningful impact on gold prices this time. Historically, midterm elections have proved to be mildly supportive for gold, while they have been positive for equities.

RELATED NEWS:

WGC Dismissed Chances of Festive Season Gold Demand Surge

WGC Posted Net Outflow from Gold-Backed ETFs in October

According to WGC report, midterm elections have continued to be the primary focus point for all media. However, the general public and investors seem less interested, with concerns regarding inflation and U.S. Fed policy as well as fears of a global recession riding high. A sweep by democrats, although less likely to happen, would be positive for gold.

The gold trade body noted that gold prices dipped by nearly 2% in October this year.

The Chinese gold sales, especially in Beijing and Shanghai regions, remained strong, driven by the seven-day National Day Holiday, stability in gold prices and rising economic uncertainty. However, the intermittent Covid-19 outbreaks impacted gold sales in some areas of the country.

The onset of festivals such as Dussehra and Dhanteras as well as weddings boosted retail gold sales in India. The strong demand took the market to a premium of $3 per oz by end of October this year. The combined sales of US Mint gold Eagle and Buffalo coins registered 5% month-on-month decline in October.