The spot price has been climbing considerably since the end of last month, and this week has started to make some interesting falls. With the coming Australian federal election this Saturday, I wonder if there is any possible link between the two events. Last year the spot price had a remarkable pattern whereby it formed a local peak at the time of the first USA Presidential Debate and fell all the way until the day of the election. Once it was clear on the winner, the spot continued to rise again. Is Australia at the point where it can have a similar influence to a market such as gold and silver like USA? Or is this recent drop a pure coincidence and there are more factors at play (such as the recent Syria crisis)?
I think it is fair to say that the Australian federal election has ZERO influence on people buying and selling futures contracts for gold and silver. More likely to have been influencing the recent price movements is whether: * Ben Bernanke remember to floss in the morning before going to work * Ben Bernanke combed his beard to the right or to the left * Ben Bernanke mentioned "Syria" in a press conference
Zero. Nada. Kaput. There's talk of the AUD rising maybe 10-15 basis points (literally .1 of a cent) after the election once an outcome is known as a sort of "certainty" premium, but metal spot prices? No way. AUD has been more volatile than that anyway lately so it will be lost in the trading noise. German election outcome on 22nd Sept will possibly have an impact.
