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sunshineprofits.com / ARKADIUSZ SIEROŃ / MARCH 17, 2017,
The most commonly cited bullish arguments in favor of gold right now are the problems faced by the Old Continent, mainly the elections in certain countries. So let’s analyze them individually to consider their potential impact on the gold market.
On March 15, the general election in Netherlands will be held. The fear is that the right-wing Party for Freedom might win. The party is anti-immigration, anti-Islam and it could try to withdraw the Netherlands from the EU. Geert Wilders, the leader of the party, is ahead in most polls, but the lead is narrowing. Anyway, the Netherlands’ exit from the EU is highly unlikely. First of all, even if the Party for Freedom wins, it will probably be unable to form a government (due to its proportional system, no political party has ever won an outright majority in Netherlands – and other parties declared that they will not form a coalition with the Party for Freedom). But even if it is does win and organizes a Nexit referendum, it would probably lose, as most of the Dutch are in favor of the membership within the EU (and it is noteworthy that referenda are not binding under the Dutch constitution). Hence, although the Dutch elections will be closely watched, their significance should not be overstated, especially given the small size of the Dutch economy. However, these results could help set the stage for EU elections later in 2017. Hence, the victory of the Wilders could boost the safe-haven bids for gold as a hedge against the French presidential election, which comes on April 23 (the first round) and May 7 (the second round).