What happened to the gold price after Trump’s election win?

In the aftermath of Trump being re-elected, gold fell from all-time highs above US$2,700 losing 3 percent on November 6 to trade in the US$2,660 range. The decline is a headline for the resource sector, which also saw broad declines across both precious and base metals.

Commodities have largely been influenced by the effect the Trump win is having on bonds and the dollar as market watchers prepare for policies that are expected to require increasing deficits and fuel a run in inflation.

How these financial markets move will have a strong influence on investor sentiment and, by extension, the price of gold as they look for a hedge to swings in market volatility that come with a shift in leadership in the world’s largest economy.

With the election still fresh, what can be learned from past elections, and how might the price of gold move in the days, weeks and months ahead? Moreover, how can past policies set by presidents have an even deeper influence on the safe-haven metal than just the election cycle?

Gold price, November 1, 2016, to January 30, 2017.

Chart via Trading Economics.

The 2020 election was on November 3, and in the week leading up to the vote gold was trading at around US$1,900, although it fell as low as US$1,867 on October 30. After the election, the gold price performed positively, spiking from US$1,908 on the day of the vote to US$1,951 on November 6.

However, gold fell back down over the following weeks, and dipped briefly below US$1,800 as vote recounts in Georgia and several districts and legal challenges by Trump’s team dragged on.

Gold price, November 1, 2020, to January 30, 2021.

Chart via Trading Economics.

Gold began to climb again in December ahead of January 6, 2021, when the electoral college met to formalize Biden’s victory. That day, the attack on the US Capitol building, which aimed to stop this process, caused the gold price to plunge from US$1,949 on January 5 to US$1,848 by January 8. The events of January 6 were the start of a decline in the gold price that continued until March 8, when gold bottomed out at US$1,674.80.

Gold’s behavior at this time went against the usual trend whereby it performs well amid crisis and turmoil; the decline may been a reaction to the successful affirmation of Biden. Stock markets also reacted opposite to expectations, seeing strong gains on January 6 and 7 as investors and Wall Street believed an economic recovery was in sight.

Investor takeaway

Historically speaking, returns for gold under Democrat and Republican presidents have averaged 11.2 percent and 10.2 percent, respectively. But that might not be the data point investors should focus on.

Which party controls Congress, which is comprised of the House and Senate, has had a far stronger influence on the gold price. Under Democrat-controlled Congresses, gold has averaged a 20.9 percent gain, compared to just 3.9 percent when Congress is controlled by Republicans. In cases where neither controls Congress, gold has averaged 3.5 percent.

With that in mind, investors should consider the effects of policies enacted not only by the executive branch of the US government, but also by Congress and the Senate. Those hoping to use the immediate aftermath of the election outcome to their advantage should also proceed with caution — when it comes to gold, past elections haven’t provided great investment opportunities, with losses and gains typically being short-lived.

Key US indexes reach new all-time highs

The S&P 500 (INDEXSP:.INX), Dow Jones Industrial Average (INDEXDJX:.DJI) and Nasdaq Composite (INDEXNASDAQ:.IXIC) all reached new record levels as Trump’s victory hit markets. The S&P traded as high as 5,922.53 on Wednesday, while the Dow rose to 43,707.92. For its part, the Nasdaq reached 18,962.46.

‘The market is definitely moving in line with the Trump playbook; stocks and small caps, in particular, are higher on the idea that Trump will be good for U.S. companies,’ Seema Shah, chief global strategist for Principal Asset Management, explained to Reuters. She added that markets outside the US are reacting as well.

‘Across emerging markets, you can see China and Europe are struggling with the idea that they could face higher tariffs, and U.S. bond yields higher with expectations for a higher fiscal deficit and inflation.’

US dollar rallies, Bitcoin hits new all-time high

On the US dollar front, Trump’s win put the greenback on track for its strongest daily gain in four years.

Investors anticipate that a renewed focus on tariffs could increase inflation, potentially prompting the US Federal Reserve to cut interest rates by less than previously expected. The Fed’s next meeting is currently in progress, with many market watchers anticipating a 25 basis point reduction after September’s 50 basis point drop.

Bitcoin, which some see as a hedge against traditional financial instability, hit a new all-time high, reaching US$75,397 shortly after Trump’s victory. The cryptocurrency’s surge reflects investor sentiment that a Trump administration will be more favorable to digital assets than a Kamala Harris-led country might have been.

The boost continues the trend of cryptocurrencies being perceived as alternative assets in times of uncertainty.

Gold, also typically seen as a safe-haven asset, experienced a decline. The yellow metal sank as low as US$2,660.84 per ounce on Wednesday after spending the better part of the last three weeks above US$2,700.

Experts see the yellow metal facing opposing pressures: inflation risks from tariffs could increase demand for safe-haven assets like gold, while the strong dollar and stabilized economic growth might dampen that demand.

Silver also fell on Wednesday, dropping to US$30.99 per ounce at its lowest point.

Oil, copper and agricultural commodities react

Other commodities saw contrasting responses to Trump’s victory at the polls.

Both Brent and West Texas Intermediate crude futures saw small declines on Wednesday. Looking longer term, some analysts believe a Trump presidency could be positive for oil — if he renews sanctions on countries like Iran and Venezuela, these nations’ oil exports could be reduced, creating a tighter supply situation.

Copper saw a more significant decline, with Reuters reporting that it is set to record its biggest intraday loss in five months. Market participants appear to be pricing in the possibility of reduced US support for electrification projects, which could lower demand for copper, along with other industrial metals.

“We are seeing industrial metals taking the biggest hit, led by copper and iron ore, while grains trade lower, led by soybeans on fears that China’s countermeasures may hurt US exports of soybeans and corn,’ Ole S. Hansen, head of commodity strategy at Saxo, said in an emailed note.

China is a leading importer of soybeans from the US, making the market heavily dependent on the Asian nation.

Trump’s election has raised concerns that new tariffs could disrupt the US-China agricultural trade relationship, potentially prompting China to impose retaliatory tariffs on American crops.

Wheat and corn, while less reliant on Chinese markets, also trended downward before recovering.

Metal content of battery chemistries by weight.

Chart via BloombergNEF.

But a key factor to remember is volume — given the amount of batteries Tesla needs to meet its ambitious goals, it could hit a bottleneck if it can’t secure a steady supply of raw materials. Of course, this is true not just for Tesla, but for every carmaker producing EVs today and setting targets for decades to come.

For that reason, demand for lithium-ion batteries is expected to soar in the coming years. By 2030, Benchmark Mineral Intelligence forecasts that demand will grow by 400 percent to reach 3.9 terawatt-hours. Over the same forecast period, the firm sees the current surplus in the lithium supply coming to end.

Drill, baby, drill? Oil, gas and mining under Trump

The president-elect is likely to take an “America first” approach to many of his policy decisions. This protectionist approach has been viewed as supportive of the US fossil fuel and mining industries, prioritizing energy independence and economic growth through expanded oil, gas and coal production.

There has also been speculation that he could ease environmental regulations, expedite drilling permits and encourage domestic mining for critical minerals — all of which would help the US resource industry.

Offering insight into how the 47th president may impact the oil and gas sector, Matthew Cunningham, editor at FocusEconomics, said oil prices may get a boost as supply declines and US demand rises.

“On the supply side, Trump could tighten sanctions against oil producers Iran and Venezuela, a strategy he pursued during his last mandate; on the demand side, Trump could scrap regulations and tax credits encouraging the production of electric vehicles (EVs), in turn raising demand for gasoline and therefore crude oil,’ he explained.

The Republican Party first used the ‘drill, baby, drill’ mantra in 2008, and during his campaign the president-elect was quick to adopt the idea in his approach to the US oil and gas sector. “Trump is also vocal about wanting to boost domestic crude production, stating if he were ‘a dictator for a day,’ he would use his power ‘for drilling and for closing the border,’ though government policy typically only has a limited impact on US output,” said Cunningham.

Drilling could also refer to mining, a topic Trump has also spoken on during the campaign season. At a July rally in Minnesota, he told the crowd he would repeal a Biden-era 20 year mining ban in the state.

“We will end that ban, in about, what do you think, in about 10 minutes, I would say about 10 to 15 minutes, right Pete?” Trump said, referring to Pete Stauber, Minnesota’s Republican representative.

“Tonight, I pledge to Minnesota miners that when I am reelected, I will reverse the Biden-Harris attack on your way of life and we will turn the Iron Range into a mineral powerhouse like never before,” he added.

Increasing US uranium supply is an issue that has garnered support on both sides of the aisle.

During his previous term in office, Trump called for the creation of a US uranium reserve, outlining plans to spend US$150 million annually on U3O8 purchases. The earmarked funds were part of his proposed 2021 budget, which failed to come to fruition as Trump lost the 2020 presidential race to current President Joe Biden.

This time, the president-elect could allocate more money to the domestic stockpile.

“Luckily, uranium is one of the few things that both Democrats and Republicans can agree on — we’ve actually gotten surprisingly bipartisan support,” said Gerardo Del Real, co-founder of Digest Publishing and editor of Daily Profit Cycle. “So regardless of who ends up winning this election, I think there’s nothing, but bright days ahead in the uranium sector.’

To increase supply and ensure energy security, Trump could repeal a Biden-era uranium-mining ban near the Grand Canyon. In August 2023, the Biden administration designated Baaj Nwaavjo I’tah Kukveni a national monument, protecting over a million acres from uranium mining to preserve Indigenous sites and water resources.

With Trump soon to return to office, some wonder if his pledge to revise the Antiquities Act under the Project 2025 playbook will mean fewer protections for Baaj Nwaavjo I’tah Kukveni and other areas.

Ultimately, a second Trump administration could expand mining and drilling on US federal lands, potentially affecting parks and protected areas. While supporters are pointing to the benefits of securing energy independence, critics are warning of environmental damage and risks to wildlife and Indigenous lands.

Protectionism may boost US EV supply chain

Although Trump has spoken out against about EVs in the past, some market watchers believe his strong opposition toward China may ultimately benefit the US battery metals supply chain.

There has been speculation that Trump will look to levy 10 percent or higher tariffs on a wide range of Chinese imports. Given that the Asian nation is a leading producer of EV batteries, and the primary refiner for many in-demand EV materials, it’s possible such tariffs will bode well for domestic supply chain growth in the US.

“On the supply side, future federal funding for the development of a domestic supply chain may be more frugal following a Trump outcome, but his administration’s stance remains quite anti-China, and developing a domestic supply chain would remain aligned with this ideology,” Megginson explained in his comments.

Jack Bedder of Project Blue said he will be watching for regulation changes that could impact the cobalt supply chain.

Also speaking about cobalt, Roman Aubry, cobalt pricing analyst at Benchmark, noted that a Democrat win would likely be “better” for long-term demand for cobalt. Now that Trump has secured the White House, the expert will be watching what the new administration does regarding the Inflation Reduction Act (IRA).

“Although a Trump victory is unlikely to lead to repealing the IRA, he has been critical of the EV industry previously,” Aubry said. “Furthermore, changes to the (foreign entity of concern) thresholds could further limit tax credits to other foreign countries in an attempt to bolster the US domestic market as part of his ‘tough on China’ approach.”

Trump seen slowing energy transition

Looking at the energy transition more broadly, experts are already suggesting that while Trump may impede the shift, he won’t stop it entirely. While federal incentives might face challenges, the clean energy momentum driven by state policies, corporate commitments and economic factors will likely keep growth on track, albeit at a reduced pace.

“There is no denying that another Trump presidency will stall national efforts to tackle the climate crisis and protect the environment, but most US state, local, and private sector leaders are committed to charging ahead. And you can count on a chorus of world leaders confirming that they won’t turn their back on climate and nature goals,” Dan Lashof, US director of the World Resources Institute, said in a press release following the election results.

He went on to state that Trump’s return to office is unlikely to stop US clean energy growth, which has accelerated through bipartisan support for wind, solar and battery projects spurred by recent federal investments.

Leaders across political lines see clean energy as economically beneficial and a strong job creator, and Trump could face bipartisan resistance if he attempts to dismantle these incentives.

Lashof also pointed to the mounting toll of climate disasters. As of November 1, the US had experienced 24 “weather or climate disasters” for the year, with each resulting in more than US$1 billion in damages.

Investor Insight

Pinnacle Silver and Gold presents a compelling investment opportunity in the precious metals sector as it continues to advance its existing projects and pursue new opportunities, offering investors an attractive entry point into the dynamic world of silver and gold exploration.

Overview

As an exploration company focused on silver and gold projects in the Americas, Pinnacle is strategically positioned to capitalize on the growing demand for these valuable resources. The company’s investment appeal stems from several key factors:

• A robust pipeline of projects at various stages of exploration and development
• Strategic focus on high-potential areas in North and South America
• Effective capital management practices
• Aggressive expansion strategy through strategic acquisitions

The company’s business strategy involves the acquisition of past-producing mines that can be put back into production quickly to generate cash flow. By focusing on high-grade, underground mines, Pinnacle can leverage low capex, a smaller operational footprint, easier and faster permitting process and protection against metal price volatility. At the same time, the company conducts brownfield exploration for resource expansion, increasing its potential for district-scale discovery.

Pinnacle’s emphasis on creating shareholder value is evident in its approach to project selection and development. The company’s portfolio is carefully curated to balance near-term production potential with long-term growth prospects, offering investors exposure to both immediate returns and future upside.

Company Highlights

• Pinnacle Silver and Gold is a Canada-based exploration and development company dedicated to building long-term shareholder value with its silver- and gold-focused assets in North and South America.
• The company has built an asset portfolio entirely within mining-friendly jurisdictions with clear legal requirements and regulations that provide confidence in the future of each project.
• Both the Argosy Gold Mine and North Birch Project are located in the Red Lake District in Northwestern Ontario, a region famous for gold production.
• The company is led by an impressive management team with decades of experience managing mining companies that operate in the Americas.

Key Projects

Argosy Gold Mine Project

The 100 percent owned Argosy Gold Mine project is located in the northern part of the Birch-Uchi Greenstone Belt of the Superior Province of the Precambrian Shield, and just 10 km northwest of First Mining Gold’s Springpole deposit, which contains 4.7 million ounces of gold in the indicated category. The Birch-Uchi Belt lies between the prolific Red Lake and Pickle Lake Greenstone Belts and contains similar geology. Located 110 kilometres east-northeast of Red Lake, the property hosts the most significant past-producing gold mine in the Birch-Uchi Belt, with 101,875 oz of gold produced at 12.7 grams per ton (g/t) between 1931 and 1952.

Diamond drilling in October 2002 by a previous operator confirmed the extension of the gold mineralization below the old workings with intercepts of 11.75 g/t over 1.55 m and 14.39 g/t over 0.7 m on the Number 2 Vein, 100 m below the old mine development. Additional intercepts of 14.67 g/t over 1.7 m on the Number 3 Vein, and 12.02 g/t over 1.29 m on the Number 8 Vein highlight the potential to build resources on parallel, un-mined veins.

There is exceptional exploration potential on the property and the company is actively expanding its exploration efforts to delineate the full extent of the mineralization.

North Birch Gold Project

The 3,850 hectare, 100 percent owned North Birch gold project lies in the northwestern corner of the Birch-Uchi Greenstone Belt in the Red Lake mining division of northwestern Ontario, roughly 110 km northeast of the town of Red Lake. The Birch-Uchi Belt is considered to have similar geology to the Red Lake Belt but has seen less exploration and is about three times larger. The North Birch project covers a geological setting identified from airborne magnetic surveys and interpreted as a favorable environment for gold mineralization. The property covers an intensely folded and sheared iron formation similar in appearance to the one hosting Newmont Goldcorp’s Musselwhite Mine (past production, reserves and resources exceed 8 million ounces of gold), some 190 kilometers to the northeast. In addition, the stratigraphy underlying the bulk of both properties is interpreted as Cycle I volcanics, which are thought by some workers to be equivalent to the Balmer Assemblage, host of the prolific Campbell/Red Lake gold orebody (more than 20 million ounces of gold in past production and reserves) in the adjacent Red Lake Greenstone Belt.

Located about 4 km from the Argosy Gold Mine, North Birch has undergone minimal previous exploration, making it a largely grassroots prospect. The property covers an interpreted geological setting that is considered to be highly prospective for both iron formation hosted and high-grade quartz vein hosted gold mineralization.

Expansion into Mexico – El Potrero Gold-Silver Project

In a strategic move to diversify its portfolio, Pinnacle has signed a letter of intent for an option to acquire a high-grade El Potrero gold-silver project in the Sierra Madre Trend of Mexico. This expansion underscores the company’s commitment to growth and its ability to identify and secure promising opportunities in key mining jurisdictions.

El Potrero lies within 35 km of four operating mines, including the 4,000 tons-per-day (tpd) Ciénega mine by Fresnillo, Luca Mining’s 1,000 tpd Tahuehueto mine, and the 250 tpd Topia mine owned by Guanajuato Silver. The El Potrero property had undergone small-scale production from 1989 to 1990 and contains a 100 tpd plant that can be refurbished/rebuilt at relatively low cost.

The property hosts a 4 km strike length of a northwest-southeast trending epithermal vein system with high-grade gold and silver mineralization. The veins are brecciated and hosted in andesitic volcanics of the Tertiary Lower Volcanic Series near the contact with the overlying Upper Volcanic Series. Multiple small mines, accessible by adits into the side of the hill, exist along the system and some have been exploited in the 1980’s and possibly before. Vein widths are reported to be in the 0.5 to 10 meter range. Vein textures indicate the mines may be sitting fairly high in the epithermal system implying good potential to extend the mineralization to depth.

Under the terms of the agreement, Pinnacle will earn an initial 50 percent interest immediately upon commencing production. The goal would then be to generate sufficient cash flow with which to further develop the project and increase the company’s ownership to 100 percent subject to a 2 percent NSR. If successful, this approach would be less dilutive for shareholders than relying on the still challenging equity markets to finance the growth of the company.

Management Team

Robert Archer – President and CEO, Director

Robert Archer has more than 40 years’ experience in the mining industry, working throughout the Americas. After spending more than 15 years with major mining companies, Archer held several senior management positions in the junior mining sector and co-founded Great Panther Mining, a mid-tier precious metals producer, where he served as president and CEO from 2004 to 2017 and director until 2020. He joined Pinnacle as a director in March 2018 followed by his appointment as CEO in January 2019 and president in October 2021. Archer is a professional geologist and holds an Honours BSc from Laurentian University in Sudbury, Ontario.

David Cross – CFO

David Cross is a CPA and CGA with over 21 years’ experience in the junior sector with a focus on finance and corporate governance. He is currently a partner of Cross Davis and Company LLP Chartered Professional Accountant, which specializes in accounting and management services for private and publicly listed companies within the mining industry, and has recently been appointed CFO of Ashburton Ventures.

Colin Jones – Independent Director

Colin Jones is principal consultant for Orimco Resource Investment Advisors in Perth, Australia. He has almost 40 years’ experience as a mining, exploration and consulting geologist in a number of different geological environments on all continents. He has managed large exploration and due diligence projects, and has undertaken numerous bankable technical audits, technical valuations, independent expert reports and due diligence studies worldwide, most of which were on behalf of major international resource financing institutions and banks. Jones holds a Bachelor of Science (Earth Sciences) degree from Massey University, NZ.

David Salari – Independent Director

David Salari has worldwide experience in the design, construction and operation of extractive metallurgical plants. He is an engineer with more than 35 years of experience in the mining and mineral processing field. He is currently the president and CEO of DENM Engineering.

Ron Schmitz – Independent Director

Ron Schmitz is the principal and president of ASI Accounting Services, providing administrative, accounting and office services to public and private companies since July 1995. Schmitz has served as a director and/or chief financial officer of various public companies since 1997, and currently holds these positions with various public and private companies.

Oil market shaken as investors lose faith

Uncertainty took many shapes in the third quarter, for the oil segment it materialized as shifting sentiment.

“In early September, for the first time on record, the net position of hedge funds on the ICE exchange turned short from long. Oil demand from China is decelerating, but OPEC+ remains committed to hiking its output from December onward; the cartel’s unity is teetering, with Angola having left in January, the UAE fighting for a higher oil quota, and other members exceeding their allowed production levels,” he said.

Tense geopolitical dynamics as the Ukraine war continues and relations deteriorate in the Middle East paired with the looming US election further fueled uncertainty, factors that usually add tailwinds to the oil market.

However, surplus supply concerns outweighed any support during the third quarter. Prices dipped to a year-to-date low on September 10, touching US$69.21 (Brent), and US$65.69 (WTI).

All eyes on America for oil outlook

For Phoenix Capital CEO Adam Ferrari the weak oil prices may be indicative of larger trouble.

suppressed Q3 price movement coincided with a decline in the US’ red hot mergers and acquisitions segment, which registered its first quarterly decline after six consecutive periods of growth.

Between July and the end of September the US energy sector saw US$12 billion in M&A deals, a quarter-over-quarter drop from Q2’s US$54 billion, but still historically high.

“2024 was a big year for mergers and acquisitions—consolidation across the sector is at an all-time high. Prices softened in Q3, and we saw the US rig count dip. Producers here are moving cautiously, likely waiting to see what happens with the election,” Ferrari said.

Regardless of the short term turbulence, Ferrari and the Phoenix Capital team are optimistic about the market’s long term fundamentals.

“We’re still bullish on crude oil for the next two to five years,” he said. “ Global demand continues to surprise on the upside, even as many developed nations try to reduce their reliance on oil. The reality is, oil isn’t easily replaced, so worldwide demand keeps rising.”

Aside from the US economic outlook, Ferrari pointed to geopolitical strife as an ever present current in the market.

“Geopolitics are always part of the equation for oil,” he said. “The Middle East is crucial for global supply, and any political instability or potential military conflict there tends to push prices up. It’s about risk—there’s always a premium on oil because of that underlying geopolitical uncertainty.”

US natural gas prices inch higher in Q3

US natural gas prices held in the US$2.15 to US$2.92 range through most of Q3, despite slipping to a quarterly low of US$1.89 at the end of July.

“As is generally the case, US natural gas prices were largely influenced by domestic developments,” said FocusEconomics’ Cunningham, noting that Q3 values fell by US$0.10 on average quarter-on-quarter.

“Prices sank in July due to a combination of extremely high inventories and the closure of Freeport, a major LNG export terminal; however, since then, they have trended upward, aided by a hot summer, decelerating production amid a record-low gas rig count and the reopening of the Freeport LNG terminal,” he added.

These trends were further evidenced in the Dallas Fed’s survey, which notes, “the natural gas production index declined from 2.3 to -13.3, suggesting natural gas production decreased in the quarter.”

A Q3 reduction in natural gas output isn’t likely to push prices higher in the near term, according to Ferrari.

“In Q3, the story was all about supply. The US is sitting on an abundance of natural gas, and that’s keeping a lid on prices,” he said. ‘That said, the ongoing shift toward natural gas for power generation is a long-term positive. US producers have also been able to lock in higher prices through the futures market, allowing them to keep drilling.”

Global tensions keep natural gas prices on edge

Natural gas is also prone to geopolitical volatility, although less from the Middle East and more from in Ukraine.

“The impact on the US natural gas market from geopolitics is largely due to spillovers from the Asian and European natural gas markets; to fuel natural gas demand, these two regions rely heavily on LNG imports, including from the US. In particular focus is the war in Ukraine; Kyiv has refused to extend a gas-supply agreement with Russia — which remains a major supplier to Europe — beyond the end of this year,’ Cunningham explained.

Tensions will likely carry through as European countries are diversifying sources away from Russian gas after the country’s the invasion of Ukraine, leading to heightened reliance on LNG imports from the US and other allies.

Supply concerns have also been exacerbated by recent Middle Eastern conflicts, which are threatening key supply routes and adding price volatility. Additionally, export restrictions from countries like Norway have raised European energy security fears as winter demand nears.

What’s ahead for oil and gas in Q4?

When asked what oil market trends investors should watch through Q4 and into 2025, Cunningham pointed to the ongoing conflict.

“At the moment, the eye of most oil analysts is locked on the Iran-Israel conflict, with crude prices surging the most in over a year in the week to 4 October,” he said. “That said, traders will also be looking out for future OPEC+ meetings, along with economic data from China and monetary policy decisions by the U.S. Fed.”

On the gas side, the US reaction to the election is top of mind.

“In Q4 in the U.S., aside from the election, the weather will remain a key factor to watch; last winter was warm, supporting inventories and setting the stage for the relatively bearish market seen so far in 2024,” said Cunningham. “ A normal 2024/25 winter would help whittle down stocks to more typical levels, supporting a recovery in prices. In 2025, weather will remain key to track, along with geopolitics, U.S. economic growth and demand from Asia and Europe.”

The US election is also a main focus for Ferrari.

Q4 is all about the US presidential election. If Democrats take control of the House, Senate, and presidency, we could see U.S. oil supplies tighten, which would drive prices up. Beyond Q4, I’m focused on demand growth. People have been predicting a decline in oil demand for what feels like a decade, but aside from the COVID downturn, it just hasn’t happened. I don’t expect demand to soften for at least another 5 to 10 years,” he said.

When it comes to gas, he is taking a more long term view.

“I’m watching the long-term trend of shifting to more natural gas for power generation. If you look at grids that rely heavily on renewables, like California’s, power prices are significantly higher compared to states like Florida that use more natural gas. California’s power prices are double Florida’s, largely due to their renewable energy reliance,” said Ferrari.

How will the US election affect crypto?

The current political climate in the US has created a complex landscape for digital asset traders.

As the race between Republican Donald Trump and Democrat Kamala Harris remains competitive, market participants are adjusting their strategies in anticipation of potential shifts in regulatory frameworks.

Trump’s campaign has been characterized by a supportive stance toward cryptocurrencies, while Harris has expressed her intention to create a more structured regulatory environment for digital assets.

But while the election may create short-term volatility, experts believe it will take time for its full impact to emerge.

“The biggest changes for mid-longer term crypto policy and direction won’t be seen until after the week has passed and seats around the president are filled or maintained,” Paul Howard, senior director at Wincent, told Bloomberg.

As voters head to the polls, analysts continue to monitor the potential impact of the election on regulatory approaches to cryptocurrencies, as well as the broader economic implications of the election outcome.

Click here for more on what a Trump or Harris victory could mean for the crypto industry.