Re: US elections - I expect that even if the Democrats hold on to the House by a few seats, that the days of heavy spending are mostly gone. Many of the Dems who will survive voted against excessive spending, or have gotten religion in the past few months. So a strict head count of Reps vs. Dems won't tell the story.
Which means is the FED does a calibrated and limited amount of QE, the USD will look like it will still have some long term value, and this will tend to cool the rise of gold.
There's also been enough pick up in the economy in the past month that the FED is likely to move away from a panicky QE response.
September auto sales way up, tech firms are making money, etc.
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Some maybe the US situation may not be the driver for gold -
However there is Europe - which is actually getting closer to panic with Ireland, et al.
And there is talk of come countries leaving the Euro, or a total Euro unwinding....
That could move gold to 2000 almost over night.
I expect the Europeans will be able to contain the problem for the next 6 months - the Europeans will get help from everybody - US, China, Japan, resource states, OPEC too, plus the IMF, etc.
Most countries don't want Europe to fall apart AND they are willing to spend money and incur some expense to keep Europe around and functioning. |
