Trump or Biden? Both to ‘provide substantial tailwinds for the long gold trade’ – TD Securities

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(Kitco News) According to TD Securities, whether U.S. President Donald Trump or Democratic candidate Joe Biden wins the election, gold will be all set to rise higher. “With the Trump and Biden agendas estimated to cost between nearly $5.0 trillion and $5.6 trillion over the next decade, both would provide substantial tailwinds for the long gold trade,” TD Securities commodity strategists write. “Barring a split government outcome, both administrations are likely to push through a large-scale fiscal deal in no time that would help de-bottleneck the real rate suppression, lifting precious metals in the process.” The end of this week is seeing risk assets firming amid some hope around stimulus talks. “House Speaker Pelosi signaled a willingness to provide airline relief as a piecemeal deal, rather than a comprehensive fiscal stimulus package. While tailwinds of the last fiscal deal are fading, raising concerns that the U.S. may lose economic momentum before a new fiscal deal is agreed upon, gold bugs may not need to look too far on the horizon to expect a large-scale deal.”

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