As the presidential election in the United States looms, investors are rushing to safe haven assets like Gold and Bitcoin as the market prepares for uncertainty, according to a precious metals specialist.
In what is being one of the most polarising elections in US history, president Donald Trump will take on Democrat hopeful Joe Biden on November 3.
A negative reaction to the result in traditional markets will increase demand for safe haven assets like gold and Bitcoin, although it must be stated that Bitcoin has shown signs of correlation with the stock market in 2020.
Andrew Maguire, precious metals specialist at Kinesis, said: “Potential outcomes of the upcoming US elections are driving safe-haven demand. Uncertainty around factors such as candidates’ regulatory and tax policies could spark negative reactions from traditional market players, driving more investors towards gold and silver.
U.S. Futures Rise on Stimulus Hope; Bonds Fall: Markets Wrap. We see nothing big coming before US election! Don’t get trapped #SPX #GOLD #SILVER https://t.co/NadJ98Epeb
— Ravi (@BullvsBears) October 19, 2020
“Elsewhere, market volatility has been exacerbated recently when President Trump tested positive for COVID-19. With the gold price rising following the black swan event, we expect gold to gain strength amid such uncertainty.”
Both Trump and Biden have remained fairly impartial and diplomatic on the topic of cryptocurrencies, but with increased attention surrounding global CBDCs and institutional inflow into Bitcoin, the two candidates may be forced into taking a strategic approach next term.
At the time of writing Bitcoin is trading 191.22% higher than its yearly low at $11,672, while gold is forming a bullish pennant at $1,909, which was its previous all-time high dating back to 2011.
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