US election fears are chasing investors to gold

As we enter the last 100 days before the US election, global market watchers have been increasingly assessing the risk of a possible Trump presidency. While there are natural risks involved during any election season, when change in power and policy is imminent, global markets have yet to show any serious volatility in the lead up to the US’s November 8th election. This stands in contrast to the Brexit referendum, which had everyone from hedge funds in Hong Kong to the Fed prepping contingency plans months in advance.

Still, Trump’s most trumpeted policies may send the markets into jitter the closer the election comes. The New York billionaire is a staunch protectionist, and has made it clear that he will re-negotiate or cut trade deals that he sees as unfavorable. The risk of less geopolitical security is also a possibility, as Trump has threatened to remove US funding — or complete involvement — from NATO and East Asia, which would invite greater Russian and Chinese aggression.

A Trump presidency, Bloomberg reports, could scare off investors looking at the US dollar as a safe haven, as well as all other global currencies, and chase them towards the world’s most stable mineral: gold.