Election scenarios: Why gold price wins either way

Gold last traded at $1,904 an ounce. Silver at $24.60 an ounce.

NEWS SUMMARY: Precious metal prices steadied on Friday on upbeat manufacturing data and a flat dollar. U.S. stocks traded mixed as a decline in Intel pressured the broader tech sector. Investors also weighed the potential for additional fiscal stimulus as well as news on the coronavirus treatment front.

Golubova/Kitco---"Markets fear uncertainty and there is plenty of it on the table with the U.S. election less than two weeks away. What does it all mean for gold? Analysts say that even in the worst-case scenario, gold will see higher prices by year-end....'The Democrats on average plan to spend $5.6 trillion over the next couple of years and that ultimately means that much of that will be funded by central bank printing,' TD Securities head of global strategy Bart Melek said....A full Democratic sweep could still shock the markets....Important to highlight that a Donald Trump win is also good for gold, with analysts saying that gold will run higher under either of the candidates. 'Regardless of which presidential candidate gets in, gold will ultimately be going higher. Both candidates will be spending money, and that is bullish for gold,' said Phoenix Futures and Options LLC president Kevin Grady....'Regardless of who wins, inflation expectations are ticking up. We could see $2,000 an ounce gold by the end of this year...More generally, gold prices will stay high for an extended period of time,' said Capital Economics commodities economist James O'Rourke....The worst-case scenario would be a contested election, according to analysts, who don't rule out this possibility amid a very polarized landscape in the U.S."