Gold could enjoy a knee-jerk rally to $1,400 a troy ounce in case Republican nominee Donald Trump secures the US presidency, Rambler News Service reported November 7 referring to the survey by Thomson Reuters GFMS.
If Democratic candidate Hillary Clinton wins the presidential race, gold prices will respond with a decline. Experts assume gold to trade at $1,420 on average in 2017.
In Q3 2016, the global gold market was mainly driven by speculative bets in Western countries in response to the shocking vote in the UK’s referendum. Nevertheless, demand for gold in physical terms remains low.
In the run-up to the Brexit referendum in June 2016, The Telegraph wrote the Britons rushed to buy gold coins, bars, and safety boxes due to fears for a slump in the pound sterling.
On June 23, the UK held the referendum on whether the kingdom should quit the European Union. The pro-Brexit camp won 51.9% of votes.
