Expert: No matter who wins the US presidency – the price of gold will benefit

The presidential election campaign in the USA is slowly gaining momentum and investors are always evaluating the potential candidates for the highest office in the USA with an eye on the financial market. But the outcome of the election is irrelevant for the price of gold, explains an expert.

• Gold price hits new all-time highs in difficult conditions
• Future interest rate policy speaks for the price of gold
• Expert also sees potential for copper


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The price of gold has gained around nine percent in value over the last twelve months. The course of 2024 has so far not gone in the direction of those investors who are betting on a rising gold price. Brien Lundin, editor of the “Gold Newsletter”, believes in the price potential of the precious metal in the medium to long term.

The macroeconomic environment is crucial

In an interview with Kitco Mining as part of the Metals Investors Forum Vancouver 2024, the market expert explained that the price development for gold depends in particular on the economic situation. Lundin is primarily relying on the interest rate policy of the US Federal Reserve, which has spoken against rising gold prices in recent months.

“We’re going to have a pivot point. We’re going from a rate hike cycle to a rate cut cycle. That’s huge,” he explained. Despite headwinds, the price of gold performed very well and even reached new all-time highs, “and now we are entering a phase in which it will really have an enormous tailwind,” emphasizes Lundin, with a view to the expected falling interest rates, which are usually accompanied by rising gold prices .

In his opinion, it is irrelevant who will win the race for the US presidency. Any winner will face high levels of debt and will therefore have to lower interest rates, which will favor hard assets such as gold, he points out.

$2,100 “important level”

“I think that’s enough to prove to investors that there’s a trend here that’s here to stay, and at that point we’ll see more money.” At the same time, Lundin noted that many Western investors are “not yet involved in this market.” Against this background, he assumes that as soon as they enter the market, the price of gold will be driven up. To “much higher levels.” The price mark of 2,100 US dollars per troy ounce is an important level that the gold price must reach. A troy ounce currently costs around 2,013 US dollars, which would result in an upside potential of around 4.3 percent.

Confidence also for copper prices

In addition to the prospects for the gold price, Lundin also discusses the forecasts for the development of another metal in the interview: copper. Here too, the expert is optimistic about the price development and justifies this on the one hand by the fact that there is no suitable replacement for use in batteries. In addition, it takes “ten to 15 years for a copper deposit to be productive,” he emphasizes. In the last decade and a half, too little capital has flowed into exploration. “There is a supply shortage that is inevitable,” he said. “If you ignore the overall electrification trend, you would still be looking at a copper supply deficit in the coming years based on just a baseline scenario. Add electrification to the mix and you’re going to need a lot more copper than we have today. ”

Editorial team