Gold prices are currently sitting at $2,750 an ounce this Monday morning, slightly up from $2,740 at the beginning of last week. This price movement reflects the uncertainty and volatility in the market due to geopolitical tensions and upcoming major events.
Geopolitical Developments
Over the weekend, Israel retaliated against Iran by targeting a few military sites, rather than crucial oil and nuclear facilities. This action has eased some concerns in the Middle East, contributing to a more stable geopolitical climate which could impact gold prices in the coming days.
The upcoming Federal Reserve meeting on November 7 for another interest rate decision is a significant event that investors should be prepared for. Before this crucial interest rate announcement, several economic indicators like employment reports, 3rd Quarter GDP, and a monthly Personal Consumption Expenditure (PCE) report will be released. These indicators can influence the Fed’s decision on interest rates, affecting the value of gold.
Impact of US Presidential Election
The United States Presidential Election on November 5, just two days before the Federal Reserve meeting, could have a substantial impact on gold prices. Proposed economic policies from candidates such as Kamala Harris and Donald Trump may lead to increased inflation and national debt. In this uncertain economic environment, gold investment remains a consistent strategy to hedge against dollar devaluation, regardless of the election outcome.
At the recent BRIC nations summit in Kazan, Russia, discussions were held about a proposed digital currency backed partially with gold. While there are obstacles to launching this Central Bank Digital Currency (CBDC), its potential implementation could further contribute to de-dollarization efforts. Gold continues to be viewed as the ultimate hedge against de-dollarization, providing stability and value in a changing economic landscape.
Stay informed about the impact of these events on gold prices by following the upcoming events closely. The Federal Reserve meeting on November 6th and 7th, alongside the U.S. Presidential election on November 5, will be critical moments for market watchers. Consider joining our webinar, “How will the 47th President May Affect Gold Prices?” for further insights and analysis.
