Gold down as Clinton headed for victory.
Published on 07.11.2016 20:07

The Gold price is sharply lower today as the FBI decided not to press charges against Hilary Clinton over her involvement in an email scandal which threatened to ruin her presidential ambitions.

At 4.58pm (GMT) gold was trading at $1,280 down from $1,304 at close of trade on Friday.

Gold had been on a winning run for more than 2 weeks after trading as low as $1,240 on the back of expectations that Donald Trump had real chance of pulling of an upset and becoming president on November 8th on the back of the FBI investigation.

The news that Clinton was cleared brought a welcome relief to her campaign as well as increased chances that she will win the US Presidential election tomorrow over Donald Trump.

The Trump scenario now seems less likely as Clinton may now attract voters who may not have voted for her had the FBI brought charges against her.

Although a Clinton victory is considered a stabilizing factor for the financial markets, a report out on Friday showed more and more Hedge funds are piling into gold as they believe that no matter who will win the presidential election, uncertainty still looms.

The gold price is predicted to jump significantly on a Trump win, while if Clinton prevails, the price may pull back to around $1,250 in the short term, but will then resume an uptrend on the back of uncertainty which will be made all the more important if the election is close.

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Andrew Masters

Analyst

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