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On October 10, the General Staff of the Armed Forces of Ukraine announced that Ukrainian troops had again attacked the Samara linear production dispatch station in Russias Samara region. The extent of the damage is still being assessed. The Ukrainian side stated that the station is a major hub for receiving, storing, and blending crude oil for Russia, playing a crucial role in ensuring the needs of the Russian military. Furthermore, the Ukrainian military confirmed that four storage tanks were destroyed and a large fire broke out during the attack on the station on October 7. Ukraine stated that such attacks are aimed at weakening Russias military and economic potential.Russia appoints governor: Four civilians have been killed in the Russian-controlled Luhansk region of Ukraine in the past 24 hours.On October 10, Irans Fars News Agency released a video showing Iran using a Shahed drone to strike US targets. This is reportedly the first time Iran has publicly released footage of using this weapon in an attack. The newly released video also shows Iranian Pavi cruise missiles being launched from bases along the Strait of Hormuz, striking US targets in the region.Ukraines Ministry of Energy: Power outages occurred in Kyiv and surrounding areas following Russian attacks.On October 10th, at a recent political seminar in Israel, former Israel Defense Forces Deputy Chief of Staff Yair Golan stated that Israels killing of former Iranian Supreme Leader Ayatollah Khamenei "was a mistake and not in Israels interest." Golan said that there was originally a strategic balance when dealing with a senior, aging, and hardline leader, but after eliminating a large number of key figures, Israel has instead inherited a more extreme and violent camp. He believes that from a long-term strategic perspective, Israels situation has deteriorated, and the Netanyahu governments attempt to overthrow the Iranian regime has failed. The US and Israel launched a military operation against Iran on February 28th, resulting in the deaths of Khamenei and several senior Iranian political and military officials. In response, Iran attacked targets within Israel and several US military bases in the Middle East.

The election battle has already started. Who will benefit the gold price?

Eden

Oct 25, 2021 13:27

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If Trump loses power, gold prices may rise before the election

Under the epidemic, the Federal Reserve introduced an unlimited amount of easing policy, coupled with Congress’s rescue plan, which triggered a bubble in the financial market. The market risk was very high when it was realized, but because it was the election, the breakpoint was still not reached. In addition, the market generally believes that Trump’s election is beneficial to the stock market. Therefore, if Trump loses its position in the election, some investors may withdraw their funds from the stock market and turn to assets they consider safer, such as gold. High gold prices. This situation may occur before the general election, so changes in the election situation must not be ignored.


Biden's 7.3 trillion dollar policy or favorable gold market

If Biden is elected, it will undoubtedly ease the conflict at home and abroad and effectively suppress the epidemic. However, because the United States has suffered severely due to the epidemic, after Biden is elected, the chances of financial markets returning to before the epidemic are not low. The price of gold will return to the economy and fundamentals and will be affected by changes in the quantitative easing policy.


Judging from the current situation, the Fed stated earlier that unlimited easing will continue until 2023, which will allow gold prices to be supported to a certain extent. Therefore, at least before 2023, the election of Biden as president has limited impact on gold prices.


In addition, Biden proposes to launch a spending plan of US$7.3 trillion in the next 10 years. Some analysts believe that this is good for gold prices. Because of the increase in US government debt, the dollar will weaken and the price of gold will rise.


Even if Trump is re-elected, he will face a weak US economy, and the market's safe-haven demand for gold will not decrease.


Finally, if the elected president and the Congress belong to the same party, it is undoubtedly the most beneficial for governance. However, if the president and Congress split the party, the power of the president is weakened and domestic conflicts increase, which may benefit the price of gold.


If it is a real gold investment, the current gold price is under pressure and you can consider entering the market. However, if you participate in the form of leverage, you must pay attention to the current market sentiment, as the price of gold fluctuates greatly during the general election.


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