Battle for control of both chambers of Congress! What will feel the pressure first: the U.S. fiscal deficit, the dollar, or gold?

The battle for control of both chambers of the U.S. Congress is, on the surface, a political contest, but behind it lies a struggle over the government’s purse strings.
U.S. government debt has already exceeded $40 trillion, and the fiscal deficit, government funding, and the debt ceiling are becoming focal points for investors. Whichever party wins, it will be difficult to close the enormous gap between fiscal revenue and spending.
If Republicans continue to control Congress, policies such as tax cuts, infrastructure investment, and defense spending may have more room to advance, but fiscal expansion could also intensify debt pressures. If Democrats regain control of some or all of Congress, government budget negotiations may become more complicated, and fiscal policy could move forward more slowly.
For U.S. stocks, fiscal expansion could boost the economy and corporate earnings in the short term, but if Treasury yields continue to rise, tech stock valuations could come under pressure.
Gold follows its own logic: a widening fiscal deficit, concerns about confidence in the dollar, and geopolitical risks could all provide long-term support. However, a stronger dollar and rising real interest rates could also weigh on gold prices.
My view is that gold is not merely a supporting player that appears during crises; it is also a risk balancer in an investment portfolio. The dollar is not an eternal powerhouse either—the key still lies in interest rates and fiscal fundamentals.
That’s what makes the market so interesting: governments are busy balancing the fiscal books, while investors are busy balancing their asset books. Whoever can manage risk will have the best chance of coming out on top! #每周来晒 and #The U.S. midterm elections are entering the final sprint
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