Election day in the U.S. is finally here, and gold is holding steady, hovering near record highs.  This year, demand for gold has been driven by a mix of geopolitical tensions in the Middle East , safe-haven buying , reserve diversification , and U.S. interest rate cuts . For many traders, the trend in gold has been clear and rewarding. But when it comes to U.S. election periods, things can get complicated. The good news? With the right strategy, you can handle the chaos with confidence. Here are some tips for trading gold on election day:

1. Take Smaller Positions to Manage Volatility

Volatility is the name of the game during election season.  Sudden, sharp price swings can easily trigger drawdown limits, especially for prop traders. The best move? Trade smaller positions. This approach gives you more room to adapt if the market turns unexpectedly. Think of it as giving yourself a safety net  to weather any storm.

2. Be Quick to Take Profits and Stay Consistent

Election day can bring rapid shifts in market sentiment as states report their results.  To stay ahead, focus on taking quick, small profits. Don’t wait for massive gains—secure what you can and move on.  This strategy helps you lock in profits and avoid getting caught in sudden reversals, plus it keeps you aligned with prop firm consistency rules. 

3. Stay Informed and Leave Bias Behind

Real-time updates are crucial on election day.  Follow trusted financial news sources and keep an eye on platforms like FinancialJuice or reliable X accounts for immediate election-related updates. Here’s a key tip: set your political opinions aside.  Your job is to respond to market signals, not personal beliefs. Watch Pennsylvania closely—if Trump wins North Carolina, attention could shift to PA, which might be the deciding state like it was in 2020.  Remember, PA won’t start counting mail-in ballots until election day, so results might not come until early Wednesday (ET), impacting late Asia trading. 

4. Know the Key Election Times

Timing is everything on election day.  Exit poll embargos are lifted at 5 pm ET, and swing states, especially Pennsylvania, are crucial.  Pennsylvania polls close at 8 pm ET. In 2016, the Associated Press called Pennsylvania at 1:35 am ET, which triggered major market moves. If we see a similar situation this year, expect the Asia session to be highly volatile.  Historically, U.S. election results are called around 11:20 pm ET, but delays can happen if there isn’t a clear winner.

5. Set Price Alerts to Stay Prepared

Want to stay on top of big price moves without being glued to your screen?  Set price alerts on your trading platform. With sharp swings likely, alerts can help you react quickly to major support or resistance levels. For gold traders, this can be a real game changer when the market starts moving fast. 

Trump or Harris: Who’s Better for Gold?

No matter who wins, the factors driving gold’s strength are expected to remain relevant. But here’s the scoop: a Trump win could mean more short-term upside for gold.  His policies often focus on tariffs and protectionism, increasing trade tensions and pushing inflation higher—boosting gold’s appeal as a safe haven.  On the other hand, a Harris presidency would likely bring more stability and continuity, with lower inflationary pressures and steadier growth, which could reduce gold’s demand as a hedge. 

Polls are tight, adding to the uncertainty.  Whatever the outcome, gold traders should be ready for significant price movements. The key is to stay nimble, well-informed, and prepared for anything. 

Trading gold on U.S. election day is all about being smart: take smaller positions, secure quick profits, stay informed, use price alerts, and know when key updates are expected. Stay flexible and be ready to adjust as results come in.