long-gone >Election of those from the right in the US have helped gold
It certainly seems so but also there has been a lot of coincidence in that many of the factors which contributed to gold's prolonged weakness have run their course eg CB sales, dollar strength, 20 year bull market. Also there is no more forward selling and there is unwinding of hedges and a lot economic uncertainty. I don't think one can attribute these factors to a political swing.
Anyway, I don't think there has been all that much of a swing to the right in Europe. le Pen, in France, received only 18% of the vote and Fortuyn's party, in Holland, about 17%. When Heider won in Austria he nearly caused a revolution and had to resign.
Of course, the right in the US is not the same as the right in Europe which is more concerned with national exclusivity and immigration problems. In the US, the so-called right is more concerned about promoting the interests of big business eg oil, arms and, frankly, I don't think it is particularly concerned with gold.
In fact, I don't think gold is of much interest to any US Administration, period. If it goes up, fine, and if it doesn't, that's also OK. What the US Administration is concerned about is the price of oil and the strength of the US economy and, indirectly, the strength of the dollar. |
