Precious metal hits on-week high as US president secures re-election.
The success of US president Barack Obama’s re-election campaign has boosted the price of gold, taking it to a one-week high as the political appointment is viewed by the market as positive for continued economic stimulus in the States.
As Obama was announced as the president of the US, the gold price hit US$1,723.80 (£1,077.11) per ounce.
The gold price is often influenced by political shiftings in the US and last month hit an 11-month high of US$1,795 per ounce when the US Federal reserve announced a third round of economic stimulus; on Monday it had dipped to just US$1,672.75 per ounce, the lowest price since August.
There was much discussion in the market before the election results were revealed as to which candidate – Obama or rival Mitt Romney – would be best for gold.
UK bullion dealer The Real Asset Co got involved with the debate with head of research Jan Skoyles backing the Obama bid in a blog post on its website.
Yesterday Skoyles wrote: “Those who invest in gold may be wary of a Romney win, particularly as he is expected to replace Bernanke which may result in easing ending earlier. Interest rates may also be increased, another issue for gold investment. However, as we said in our research last week a Republican president can still do great things for the gold price, particularly one who arrives in the midst of a money-printing bonanza.”