What Obama's Win Means for Stocks, Gold - Analysts React
"[A]t this stage an Obama win combined with a clearly Republican controlled House of Representatives will be supportive for gold in the short thru long term. Obama has shown no serious intent to reign in runaway spending and attempt to close the deficit. A Republican House might be the only line of defense if Romney cannot carry the balance of the swing states remaining. Our national debt has significantly weakened the U.S. dollar and this is the key to higher gold going forward."
Adrian Day, president of Adrian Day Asset Management:
"[W]ith the President and Democrats projected to win in Pennsylvania, Wisconsin and Ohio (CBS), the bias is tilting towards an Obama reelection. In addition, based on early completed results, it appears the Republicans will not gain control of the Senate. If these trends and projections hold up, this would be positive for gold: The threat of Bernanke being replaced and a less-accommodative monetary policy being introduced is removed; assuming the Republicans retain control of the house, then the stalemate in Washington remains, and the threat of the "fiscal cliff" remains.
"Gold trading overseas reflects this, switching from a negative earlier in the evening, when Romney appeared stronger, to a gain now [10:20 p.m. EST Tuesday], a reversal of $13. ..."With Obama looking more likely winner--New Hampshire now projected for Obama while Wisconsin looks firmer--overseas markets are reacting as one might expect: gold reversed and now up because threat of Romney removal of Bernanke lessened (though threat was overblown); while stocks reversed and now down because of continued deadlock in Washington." Chad Connelly, Republican Party chairman of the state of South Carolina: "[W]e had election issues even here with extraordinarily long lines and problems that I had to deal with. Pretty stunned that America re-elected the guy who has blown up our debt and deficits. Maybe show that people now expect government to provide for them. Now moving further down the path of European socialism. Sad."
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