WGC Report Spotlights U.S. Election Impact on Gold Price

SEATTLE (Scrap Monster): The World Gold Council (WGC) published a report analysing the potential impacts of U.S. Presidential elections on the price performance of gold. The gold trade body observed that historically gold tends to perform below its long-term average in the period around elections, though the result has not been particularly consistent.

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The report identifies two opposite trends. Firstly, gold tends to perform slightly better six months prior to election of a Republican president and flat after the election. On the contrary, it tends to underperform before the election of a Democratic president and perform below its long-term average in the six months following the election. Furthermore, WGC noted that these are only trends and that they are in no way statistically significant.

WGC noted that US demand for bars and coins tend to witness notable surge during Democratic presidencies.

All in all, the analysis of gold price and U.S. presidential elections suggests that gold’s reaction is not directly correlated to party affiliation or changes in leadership. The gold’s performance is more directly related to key global macroeconomic factors, rather than local factors.

Gold has risen by 60% during the previous Trump presidency. Under Biden administration, it has recorded 30% gain so far, after displaying sideways movement during the initial times.