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Ronan Manly: Elections and political uncertainty help drive gold demand and price

Section: Daily Dispatches

By Ronan Manly
Bullion Star, Singapore
Thursday, August 1, 2024

This year is shaping up to be a perfect storm for political risk and uncertainty, given that in addition to the upcoming US presidential and Congress elections, we have already seen major shifts in the political landscapes of two other G7 countries, France, and the United Kingdom.

While often underappreciated, elections and changes in governments in major economies like the U.S., U.K., and France create political uncertainty that can have a significant impact on financial market stability, investor sentiment, and on macro factors such as interest rates, U.S. dollar strength, and geopolitical risk -- all of which are key influences on the gold price.

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This is because the run-up to elections leads to uncertainty about election outcomes and who will be in power, and the outcome of elections often leads to new parties and leaders assuming power who have different agendas to their predecessors. New governments and leaders assuming power with new agendas then usually implement different economic policies compared to their predecessors. This phenomenon is known as policy shift. ...

... For the remainder of the analysis:

https://www.bullionstar.com/blogs/ronan-manly/elections-and-political-uncertainty-critical-drivers-of-gold-demand-and-the-gold-price/

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