Gold Performance in Midterm Election Years – There’s a Bigger Trend Elsewhere

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Gold Performance in Midterm Election Years – There’s a Bigger Trend Elsewhere
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US midterm elections will be held on November 8 2022. Going back to 1978, the performance by gold prices before and after US midterm elections is a mixed bag. Any direct connection between gold and midterm elections may be spurious, at best.

, which generally speaking, has a short-term focus and a shorter-term impact. Or at least, that was the design as I learned when taking economics classes twenty years ago.

In this article, I’m going to examine Gold prices in midterm election years going back to 1978. I’m going to look at Gold performance in the ten months leading into the election as well as the two years after, leading into the next general election.

The question then is whether it was midterm elections that were creating the trend or whether there was something else going on? And given that the trend persisted through multiple elections when the House and Senate and Presidency were all changing parties, it would seem that any direct connection to midterm elections would be spurious, at best.

But, because currencies are all relative valuations , that impact might not be so clear if we’re comparing two assets that are declining in value at the same time given increased supply. But, if we compare that currency to an asset that isn’t seeing similar depreciation, well that change can be much more prominent and that appears to be a workable theory as to what’s going on here.

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