Gold Typically Ticks Up After Midterms, World Gold Council Says
THE WALL STREET JOURNAL (Nov 8) A worker holds a gold bar before cleaning it in an acid bath at a verification center in New Delhi, India, in September.Anindito Mukherjee/Bloomberg News
Gold prices have risen 62% of the time over the six months following midterm elections, with a median return of 2%, according to a World Gold Council report using data going back to 1970.
This year, according to Joe Cavatoni, chief market strategist at World Gold Council, gold prices are more dependent on broader factors than the outcome of the election. Gold prices have retreated 8% so far this year, dragged down by higher bond yields and a stronger U.S. dollar.
"Ultimately monetary policy is continuing to be the focus,” Mr. Cavatoni said.
Other factoids from the report:
- Gold prices rose 13% in the six months after Republicans had control of the House and Democrats retained the Senate during President Barack Obama’s term in 2010.
- Gold prices held onto a 1% gain six months following a Republican sweep during President Bill Clinton’s term in 1994.
- Gold prices added 4%, 13% and 5%, respectively, during the three times the Congress became gridlocked.
