The annotated election year gold price chart below got me thinking about the influence of Presidential election cycles on the current gold rush and gold price jumps in following years…
See Hunting for Gold spot prices: current gold spot prices for the current bullion or spot price. But as you’ll see the current gold price flattening isn’t everything. Gold prices are really sensitive to the emotions of politics and economic news. This is especially true in the gold rush roller coaster of election years…
Gold prices and election cycles (Click to zoom)
As for Presidential election years and gold prices
It’s not too surprising that gold prices fluctuate around the four year election cycle and especially the 2008 and 2012 cycles. Elections are when government leaders out do themselves in making government policy and economic news look good to the average citizen for obvious election influencing reasons. Notice that it didn’t matter which party was in office either.
These politically driven four year news spin cycles affect gold prices in part because the gold commodity market is driven by future price speculation* based on current economic events, that so called “good economic news” makes gold prices sink, until the reality of the current economic situation sinks in like a bad after election hangover. At that time we usually see the up, up and away escalation in gold pricing.
So, we can probably expect gold to continue its climb in 2013-14 unless real and significant progress is made in the world’s economic situation. That’s not very likely to happen based on current debt levels and a variety of consumer demographic shifts. No matter who wins this election, the economic deficit situation is cooked in and will take over driving gold prices again by next January. - Hunting4gold.com
No comments:
Post a Comment