The Gold Price Goes Up After Obama

Posted on October 30, 2017 By

The performance of gold has risen again after Obama’s re-election. The re-election of U.S. President Barack Obama has had a very positive in some areas. Among other things, could benefit from the price of gold and climbed after the new election of the President. Quite a few experts even believe that re-election is still persistent effect on the gold price, so that in the next few weeks and months continue to rising gold prices could be expected. Obama’s election affects positively the gold value development while most experts assume that the price of gold in an election expected to fell Mitt Romney, has exactly the opposite occurred after the re-election of Barack Obama. Not only the current Gold value development is positive, but some experts anticipate a positive trend in the medium term. In the last month (October 2012) achieved the gold award the highest level for almost a year, and rose up to just under 1,800 US dollars.

The occasion for this price increase was among the Announcing the US Federal Reserve to pump still more money in the market”, more than half a trillion US dollars. Obama’s victory is now so from point of view of the experts, that is expected to continue more money in the market will be redirected. More money means higher inflation but also, which is almost always positive for the gold price. Gold price rises not only because Obama is on the rise in the gold price after the victory of Obama a relatively short-term response, so this reason alone should not cause that the gold price will develop positively also in the coming months. There are some other factors that could also cause, that the gold price will remain at least stable and probably even rise. A further clue could be for example that some central banks currently increasingly buy gold, what rise the price of course. In addition also the very small or partially negative real interest rates will contribute to that investor gold as are looking for alternative investment. While there is currently no major crisis, however, not only the political situation, but also the economic situation in the global scope is very tense.

Therefore, the markets are afraid of crises is expected to continue. The fear of the markets has resulted in turn gold in the past almost always escape in the currency crisis. Also, some critics assume that the age of the paper currencies could be soon over. Also, such predictions”instill the fear and strengthen the positive trend of the gold price. Shockingly, for example the number is that the value of the American dollar – measured by its purchasing power – has fallen about 200 years to more than 90 percent in the past. Gold has, however, still the same buying power as 200 years ago.

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