Trump or Clinton, Gold goes higher

The last minute re-opening of investigations by the FBI into the affairs of Hillary Clinton as regards her private email servers was unquestionably the key event that has swung the polls and driven gold’s turnaround in recent days. Yet both candidates support policies that would drive higher gold prices through inflation. Trump via the potential tariffs he wants to impose on a range of imported goods; Clinton via the cost of additional regulation and compliance, expansion of the welfare state, and possibly warfare state, plus her desire to tinker with Obamacare. And as per the chart below, forward inflation expectations are already soaring, and inflation is nearly always supportive of stronger gold prices. (VIEW LINK)