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Gold Prices Surge As Dollar Drops

Tanzeel Akhtar
·2 min read

Gold has been benefiting from a weak U.S. dollar and the uncertainty of the U.S. election outcome, with Democratic nominee Joe Biden in the lead but no election calls yet. 

Gold made gains this week and was trading at $1,952.28 per ounce at last check Friday. 

"While the potential election of Joe Biden means a lot to various segments of the capital markets, I think the cake was baked for gold long before the vote," said Fosterville South Exploration CEO Bryan Slusarchuk .

Bull Market For Gold: Regardless of who wins the election, the setup for a once-in-a-lifetime bull market in gold was in place due to bipartisan support for quantitative easing, unprecedented monetary and fiscal stimulus and a low-to-negative interest rate policy, said Slusarchuk.

"Gold is a currency, and right now it is the only currency in the world not being printed with reckless abandon in an effort to stave off a huge financial depression," he said. 

"Therefore, inherently gold is becoming more valuable versus its competitors every day. I expect this to continue because quite simply the Fed can’t print more gold."

As the uncertainty around the election continues, gold's strength over the mid- and long-term is underpinned by economic and financial conditions.

“There is no doubt we may see some short-term fluctuations based on the extreme animosity between the two sides during the counting phase of the election and the fact that the election is being contested,” Slusarchuk said. 

The climate represents the best set of conditions for gold ever seen, the CEO said. 

Price Action: The SPDR Gold Trust (NYSE: GLD) was up 0.14% at $183.19 at the close Friday. The VanEck Vectors Gold Miners ETF (NYSE: GDX) was up 0.49% at $41.42. 

Related Link: Should You Invest In Gold Right Now?

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