Gold will be a winner no matter who clinches the U.S. election
November 04, 2020 @ 10:15 +03:00
Gold and gold miners are set to benefit no matter who wins the U.S. election this week, one investor told CNBC. That’s because the United States will likely to adopt a sizeable fiscal stimulus program no matter which candidate wins the presidency, James Rasteh, CIO of Coast Capital, told CNBC’s “Squawk Box Asia” on Tuesday.
“We would be printing trillions of dollars more and all of that ultimately has extraordinarily positive repercussions for gold,” he said. “The fiscal and monetary policies would be almost identical under either leadership. I think that the differences that are being delineated are really more imaginative than real,” Rasteh added.
Spot gold rallied above $2,000 in August before pulling back to trade around the $1,900 level in recent weeks. On Wednesday, the precious metal traded at $1,912.41 as of 7:25 a.m. A report from the World Gold Council last week said worldwide demand and supply for the precious metal fell last quarter due to the coronavirus pandemic.
Given that those larger players are not making significant discoveries for new sources of gold and are running out of reserves, they are likely to be forced into buying out the smaller names in the market. Meanwhile, major gold stocks are notably higher this year: Canada’s Barrick Gold has notched up more than 46% gains while U.S.-based Newmont, the world’s largest gold miner, is up more than 48%.
Gold will be a winner no matter who clinches the U.S. election, investor says, CNBC, Nov 4