Analysts: If the US Congress falls into a deadlock, gold could see new upward momentum.

on November 2, as gold prices may record their worst annual performance in over a decade, investors are assessing whether changes in the U.S. political landscape could reignite this precious metal's safe-haven appeal. Matt Miskin, co-chief investment strategist at Manulife John Hancock Investment Management, stated, “History doesn’t simply repeat itself, but it does rhyme.” He noted that gold saw a rally in 2019. “If conditions in 2027 bear some resemblance to 2019, gold’s current softness could actually reverse.”

Miskin added, “Congressional gridlock may reduce the risk of further fiscal policy driving real yields higher.” He expects Democrats to make modest gains in the midterm elections, but with limited policy changes, believing this will be “a very positive development for gold.” (Jin10)