Recently, commodity analysts at CIBC Capital Markets have raised their gold price forecasts for this year and 2025 as they look ahead to the November election.

Analysts point out that during Trump's second term as president, gold may have even greater gains, although they believe that precious metals should perform well for any candidate as the US deficit continues to grow.

The analyst wrote in the report, "The rise in gold prices this year has been impressive. It is difficult to pinpoint the exact reasons, but neither candidate seems to care about the financial situation of the US government, which is certainly a factor. Similarly, the Federal Reserve (to some extent, all central banks) seems more at ease with higher structural inflation. All of this means that we believe Biden's second term should not have a negative impact on gold prices, but if Trump is re elected and sticks to his policy stance, gold may rise again

The latest forecast from the Canadian Imperial Commercial Bank (CIBC) shows that the average gold price this year is around $2290 per ounce, and it is expected to rise to $2600 per ounce by 2025.

CIBC has also raised its average estimate for silver prices this year to $28.75, and expects the average silver price to be around $34.50 by 2025.

After carefully studying current President Biden and former President Donald Trump, CIBC stated that there are three key differences between the two candidates: taxation, trade, and Federal Reserve regulation.

Analysts explain that Trump's proposal to make tax cuts permanent will increase the US deficit by $3 trillion over the next 10 years.

Although Biden hopes to raise the corporate tax rate, CIBC says he has a aggressive record in spending.

In terms of trade, Biden maintained Trump's tariffs and even imposed new tariffs on Chinese made electric vehicles, both candidates proving themselves to be protectionists. However, considering Trump's recent remarks, CIBC expects him to take more aggressive action.

Analysts say, "The most worrying thing is the threat (greatly embellished by Robert Lighthizer, former trade representative of Trump) to impose a 60% tariff on Chinese goods. This will be achieved by canceling China's most favored nation treatment as a trading partner

However, the biggest impact on gold is the Federal Reserve, as it seems to be starting a new round of easing cycles.

Analysts say, "Trump has stated that he will seek to reduce the independence of the Federal Reserve's decision-making. Of course, central bank officials have lost trust in inflation expectations, but a Federal Reserve under strict political supervision will introduce a very moderate interest rate policy. Lower short-term interest rates will certainly have a stimulating effect, and any attempt to lower the long-term yield curve through quantitative easing will also have a stimulating effect