Gold tells the election story

Gold has again been climbing in response to the US election and the continued problems in Greece. Of course, gold is still below the highs at the beginning of October and the end of February, but there seems to be a stronger rally brewing. It is hard to make judgments from the past, but as the Republican hand looked stronger, gold fell. With the likelihood of President Obama retaining office and winning, gold started to rise again.

• There will be no change in fiscal policy and in fact, there is likely to be more easing from the Fed. 
• The fiscal cliff is getting closer but the likelihood of large budget cuts has been diminished. 
• Financial repression will strengthen in the US and banks will be more restricted.

The end result is a better environment for gold.