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Will German Elections Move Gold?

sunshineprofits.com / Arkadiusz Sieroń / SEPTEMBER 22, 2017

On Sunday, federal parliamentary elections will be held in Germany. What does it imply for the gold market?

On September 24, Germans will elect members of the Bundestag, who will ultimately decide whether Angela Merkel, the incumbent chancellor, will govern for another four years. The opinion polls indicate that this is indeed likely to happen – and Merkel will win a fourth term in office.

As one can see in the chart below, Merkel’s CDU/CSU has about a 15-percent lead over the SPD, its main rival. And the AfD, which is a right-wing populist and Euroskeptic party, is expected to get only about 10 percent (or as much as 10 percent, as it could enter the parliament for the first time in history and even become the third party in the parliament)

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