Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Mid-term outcome in the United States is unlikely to change the policies of the Trump administration; both domestic and international. Currently, there is an expectation that the outcome would soften his rhetoric, and the Democrats could bring a halt to his war on the current trade policies of the United States.
However, we believe that it is unlikely to be the case.
- First of all, the President doesn’t see this as a defeat. He was focused more on the Senate side and the Republican Party is set to add three to four seats to the existing Senate majority.
- The President sees the result as support of his agenda, so, it is more likely that he would double down his commitment to the goals he has set.
- While Democrats are eager to benefit from special counsel Robert Mueller’s Russia collusion investigation, there is a strong bipartisan support for Trump administration’s tougher stance towards Russia.
- Similarly, there is also a strong bi-partisan support for Trump administration’s toughened stance against China.
- There is also a strong bi-partisan support for President Trump’s infrastructure plans and other issues such as the prison reform.
- In addition to that, when it comes to foreign and trade policies, the President has more authority than the House Democrats with a thin majority.
Instead of expecting changes in policies, you can expect domestic policies with Democrats’ new-found subpoena power in the House of Representatives. Also, expect a major battle over immigration as the migrant caravan approaches the United States.
