Korelin Economics Report

Trump As Presumptive GOP Nominee And Gold

This article posted over at Gold-Eagle.com takes a look at if the presidential race is having any impact on the gold price. I won’t spoil the conclusion that the author comes to but I do agree with him at this current time….

Here is the first half of the posting and a link to read the full post over at Gold-Eagle. Or you can just click here and be taken to the full post.

Both Ted Cruz and John Kasich dropped out of the presidential race this week. What does it mean for the gold market?

On Tuesday night, Ted Cruz suspended his campaign. The reason was Trump’s spectacular victory in Indiana. The billionaire took all 57 delegates. On Wednesday, John Kasich also decided to end his GOP presidential run. The truth is that he never had any chances to win. He just wanted to prevent Trump from winning 1,237 delegates before the Republican convention.

Therefore, the contest is over – Trump became the presumptive GOP nominee. The businessman is now forming his vice presidential selection committee. However, the Republican leaders have not yet decided whether to support Trump in the general election. Given the course of Democratic primaries, a general election matchup between Trump and Clinton is almost certain.

What about Trump’s victory and gold? Trump’s victory in the GOP primaries should be positive for the yellow metal as his presumptive nomination increases uncertainty among investors who do not know what to expect of Trump. Thus, gold should gain as a safe-haven asset. Moreover, he proclaimed himself as a “low-interest rate person”, who sees “major problems” with the strong greenback. Such declarations should raise uneasiness among investors. Some analysts have even recently noticed a correlation between gold futures prices and Trump’s primary results.

Click here to read the full article.

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