Cavatoni: Put a six-month window on any election trades

World Gold Council strategist says election outcome will likely play a minimal effect on gold prices, but investors should consider a six-month window on political trades

 Cavatoni: Put a six-month window on any election trades (photo credit: SHUTTERSTOCK)
Cavatoni: Put a six-month window on any election trades
(photo credit: SHUTTERSTOCK)

World Council Council Senior Market Strategist Joe Cavatoni told Investing News Network Friday morning that gold prices will likely not have a strong reaction to the U.S. election outcome aside from some expected short-term volatility.

“Here’s how investors should think about gold and its response to the lead-up to the election and the election results,” he said. “Most of the rhetoric is going to be around what the possibilities could be on the back of a win from either candidate. A lot of that is being guessed and priced into the gold price, but the actual win itself has little or no impact on the price of gold in the short term.”

Expect volatility, but not strong directional moves

Cavatoni believes there could be increased levels of volatility due to investors looking to position around expected policy changes — and he said central bank behavior could also be influenced by the outcome of the election.

“(People will be) looking at what’s going to happen and how they will be impacted by the fiscal challenges the U.S. is facing,” he said.

But those changes are not likely to start taking shape for at least six months into a new presidential term, he said.

“ (That’s) when policies can be discussed, clarified and potentially start to be implemented and that’s why we think six months into the election outcome is where you will see more effect on the gold price than at the moment,” Cavatoni said.

Some changes are possibile, but not enough to move the needle

Cavatoni said a win by Kamala Harris could lead to higher bar and coin demand amid Republican fears of higher inflation or taxes, but noted demand could also drop on a Donald Trump victory.

But it’s not likely to change the price of gold in any significant manner.

“It’s not momentum or substantial enough in terms of its flow to impact the price dramatically,” he said.

Featured Gold & Silver Investment Companies (Ad)

Augusta Precious Metals(Full Review)

Fees:

$0 (10 Years)

Minimum:

$50,000

"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings

Expand DetailsRenowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.
Fees:

Vary

Minimum:

$25,000

Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee

Expand DetailsFrom precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ years

American Hartford Gold (Full Review)

Fees:

Vary

Minimum:

$10,000

American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..

Expand DetailsWith over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.