By Jason Stevenson for Port Phillip Insider (Australia) –
Big US bank, Citigroup Inc [NYSE:C] believes that Trump will win the presidency. In its fourth-quarter commodities update released this week, it said that uncertainty around the US election, along with the possibility of US Fed interest rate increase in December, will spell volatility for both the FX and gold markets.
That makes sense…
Gold is a hedge against the uncertainty of government and central banks.
It could easily move higher into the November election. There’s plenty of uncertainty to support that.
Citi believes gold could trade sideways between US$1,300 and US$1,350 per ounce until the Fed decision in December. It also believes prices could see a ‘knee-jerk move’ if Trump wins the election.