Gold Price Climbs Above US$4,000 After Democrat Midterm Win

Mounting debt crisis

Speaking at the New Orleans Investment Conference ahead of the midterms, Rich Checkan, president and COO of Asset Strategies International, said the outcome would have little impact on gold’s long-term trajectory unless it resulted in meaningful government spending cuts.

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Watch the full interview to hear more from Checkan on the election outcome.

“When it comes to precious metals, unless we are voting in a majority of politicians in this midterm who are then going to cut spending … unless that happens, gold is going higher,” he told Investing News Network.

In his view, persistent government overspending, rising debt and continued money creation will remain key drivers for gold, regardless of which party is in control of Congress. He added that a Democrat wave could provide a short-term boost if Republican investors turn to gold amid political uncertainty.

Meanwhile, Peter Schiff, chief economist & global strategist at Euro Pacific Asset Management, said a Democrat takeover of Congress could be bullish for gold and silver. He expects Democrats to push for increased government spending and larger deficits, putting further pressure on the US Federal Reserve to monetize government debt.

Watch the full interview for more insights from Schiff.

Schiff believes the Fed could eventually turn to quantitative easing to contain rising bond yields, a move he sees as supportive of precious metals. He also argued that growing fiscal pressures could worsen inflation and undermine confidence in the US dollar.

Like Schiff, Craig Hemke publisher of TFMetalsReport.com, believes a potential Democrat takeover of Congress will ultimately be positive for gold.

Listen to Hemke explain where he sees the precious metals market going.

Hemke suggested that increased political gridlock and investigations into the Trump administration could stall its agenda and further undermine confidence in the US dollar and treasury market. He said Democrats could provide another boost for gold, although he cautioned that the broader market reaction would be difficult to predict.

“You can see…