Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

HSBC: Buy Gold, Regardless Of Who Wins The Election

Wednesday, November 2, 2016 7:33
% of readers think this story is Fact. Add your two cents.

(Before It's News)

gold-barsAnalysts at HSBC are out today with a big bullish call on gold, which they say will rise precipitously to multi year highs, no matter who wins next week’s hotly-contested election.

The firm sees Trump as slightly more bullish for the yellow metal, but expects big upside regardless. From Bloomberg:

Although they deem a Donald Trump victory more supportive for the price of the metal than a win by Hillary Clinton, the bank’s Chief Precious Metals Analyst James Steel says it’ll enjoy at least a 8 percent jump whoever wins the race.

An 8% jump from current levels would equate to gold prices of $1,407 per ounce, a level unseen since 2013.

HSBC’s reason for the bullish view? More U.S.-focused governmental policies:

Both candidates have espoused trade policies that could stimulate demand, with gold offering a potential “protection against protectionism,” he says. Even the relatively more internationalist Democratic candidate has argued for the renegotiation of longstanding free-trade agreements. That’s positive for gold — even if “not on the scale of Mr Trump’s agenda.”

The firm noted that gold could rise as high as $1,500 per ounce if Trump prevails next week, which would mark a massive 15% rally from gold’s current level around $1,300.

That’s because gold has long been seen as a hedge against economic and political uncertainty, both of which are expected to be highly pervasive amid a Trump presidency.

The SPDR Gold Trust ETF (NYSE:GLD) rose $1.54 (+1.25%) to $124.27 per share in Wednesday morning trading. Year-to-date, the largest exchange traded fund tied to the spot price of gold bullion has gained 22.47%.

GLD-2016-11-02

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.