US investors turn to gold as US election looms

By Sam Shaw

Added 1st November 2016

New US investors in gold increased by 81% over the month of October as the price of bullion fell to its lowest level since April at $1266 per ounce.

US investors turn to gold as US election looms

While wider markets appear complacent as to whether Donald Trump or Hillary Clinton wins, gold bullion fell 4.4% against the rising US dollar in September, with Western investor sentiment towards the metal reaching a new 3.5 year high as investors jumped on the falling price.

Online physical gold and silver market BullionVault produces a Gold Investor Index to measure whether private investors are starting or growing their gold holdings, or reducing them. The index increased from 55 in September to 56.8 last month, beating the post-Brexit peak of 56 in August.

The index would read 50 if the number of net buyers exactly matched the number of net sellers across the month.

The sharpest monthly drop in almost a year saw the number of gold buyers across the month rise by more than a third, while the number of sellers fell 16% compared to September.

Adrian Ash, head of research at BullionVault, said: “US investors have leapt on the pullback in gold prices to build their holdings ahead of next week's election.

“Just as with Brexit, the wider financial markets look complacent about the result. So for gold prices, the risk of a sharp rise if Trump produces a shock win looks much greater than a drop if Clinton matches expectations.”

Elsewhere, the Silver Investor Index also rose in October, up from 52.9 to 57.2, following its six-month run of rising prices, which ended in August – silver’s longest positive run since 2006.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Features

Frontier markets – is it still an asset class?

Frontier markets – is it still an asset class?...

With a string of countries having been promoted from frontier market to emerging market by index provider MSCI in recent years, investors need to ask themselves the question: are frontier markets still...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA International Fund Links Forum 2017
IA International Fund Links Forum 2017

Wednesday 14 September

The Langham, London

IA Best Practice Adviser Awards Europe 2017
IA Best Practice Adviser Awards Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Europe 2017
IA Future Advisory Forum Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Cape Town 2017
IA Future Advisory Forum Cape Town 2017

Thursday 5th October
The Vineyard Hotel, Cape Town

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...