On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks.
They wrote in a research note via Commodity Online, "While we have targeted gold prices moving above $2,000/oz. since the beginning of 2011, we believe the Fed's open-ended program of QE announced last month increases our confidence that a surge in the gold price above this level is only a matter of time."
Yesterday (Wednesday), December gold futures closed at $1,719.10.
But if we fast-forward to January, even March 2013, if Romney wins Election 2012, would gold prices be able to continue their upward run?
Here's what a Romney win would do for the yellow metal.
Why a Romney Win Supports
Gold Prices One thing Romney could implement is a gold standard commission, which he's been talking about in his platform.
This would have gold prices rising with the return of a connection between the U.S. dollar and gold. It is a little farfetched, but investors would jump on the precious metal as a safe investment and push prices higher.
There's also the potential change at the U.S. Federal Reserve. One area that Romney has been consistent on is his promise to replace Federal Reserve Chief Ben Bernanke. His term is not up until January 2014 and Romney could hand him walking papers if Bernanke doesn't leave on his own accord.
The Fed chief doesn't support a gold standard return, but in his absence, this idea could move forward.
Then there's that little U.S. debt problem Romney would face as president.
The nominee has said he has a plan to drastically cut spending, but once he gets into the office he will most likely realize this is a daunting task.
Cutting down the debt will have a negative effect on gold prices, but the likelihood of the U.S. doing so is slim, and would take decades. Realistically, the debt could continue rising under Romney at the helm, giving gold an even greater boost.
Also of note: Romney himself likes gold, reported ETF Daily News. The nominee marked on disclosures that he holds $250,000 to $500,000 in the yellow metal. Those would rise if he supported policies that led to higher gold prices.
RELATED: Here are the best ways to cash in on gold’s rise.
But what happens to gold prices after the election may not matter which political party wins on Nov. 6.
History has shown that gold prices fall when a U.S. president has increased economic stability, cut armed conflict, and avoided scandal, reported the International Business Times.
When Americans are either nervous or unhappy with their president, his approval ratings fall and money goes to gold. This happened under President Nixon and Carter tenures. Gold prices rose 267% and 322%, respectively.
We'll discover how America feels about the next U.S. president when votes are cast in five days.
Gold prices in New York today (Thursday) were trading just below $1,718 an ounce.
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