Gold has been on a wild ride of late, smashing through $2,500 an ounce and setting its sight on climbing even higher. It’s like gold is having its own party, and the reason for this might be related to a big political shift. Let’s dive in to see why people are all of a sudden so giddy about the precious yellow metal.

What’s happening with gold, then? It’s not about collapsing interest rates or heavy purchasing by countries like China and those in the Middle East. There is a feeling that something may be cooking-a possible reason behind the big boom in gold-maybe something to do with Kamala Harris. Yes, you read it right; the Vice President of the United States may also have a huge influence on gold prices.

Why Kamala Harris? Because she is the frontrunner for the Democratic nomination for the presidency. And if she wins, she might continue the heavy spending we have seen under President Joe Biden. It could mean big problems for the economy, which is making investors nervous.

The price of gold started the year at $2,000 an ounce. It has since jumped to $2,500, beating all previous highs during tough times like the eurozone crisis. It’s as if the price of gold is on a rocket ride and doesn’t seem to be slowing down.

So, why are people sprinting to gold purchases? For a few of the usual reasons. First, the Federal Reserve may be poised to cut interest rates, a move that traditionally boosts demand for the precious metal because it doesn’t pay interest. Secondly, the world is an uncertain place-right from threatened conflicts in the Middle East to the ongoing war between Russia and Ukraine. And let us not forget the central banks that are making steep purchases of the yellow metal.

Central banks purchased a record 1,037 tonnes in 2023, and the first quarter of 2024 was even stronger, with 290 tonnes bought during what is considered one of the busiest periods of gold purchases in recent years.

But here is where it gets interesting, a lot of this gold rush might be because of Kamala Harris. She quickly becomes the favorite for the Democratic nomination and might end up being President. Her vibes centered campaign without much on specifics has been what she has focused her time and energy on. She hasn’t shared many details about her plans if she wins, and her website mostly focuses on donations rather than policies.

So far, she only has a few concrete ideas regarding preventing “price gouging,” which some experts think will not work, and raising the corporate tax rate from 21% to 28%. Yet, her overall approach seems about spending more money, not less.

Already, the United States has an enormous budget deficit. Although the economy is relatively okay, this year’s deficit is still anticipated to reach an estimated 7 percent of GDP, which will remain well into next year. The country is borrowing over $2 trillion a year; and if the current rate of spending continues, that number is on track to rise to $2.8 trillion in 2034.

There has never been spending and borrowing like this by the possessor of the world’s reserve currency. It’s spend and borrow as if there is no tomorrow. Under Biden, the U.S. spent heavily on everything from green energy subsidies to industrial support much of it in the form of open-ended tax credits.

Democratic presidents used to at least go through the motions of appearing to care about the deficit. Bill Clinton even managed to balance the budget, but those days are long gone. It’s almost as if it is no longer a priority to keep the deficit under control.

Kamala Harris’s quick rise and likely win send a clear message: do not expect her to reduce the deficit. She might spend even more, keeping the U.S. on a path of reckless fiscal and monetary policies.

This is liable to cause the dollar to collapse, and eventually it will pose serious difficulties to the global financial system. In such times of crisis, gold is used as the only real shelter. That is why the price of gold skyrockets—as if to save the investors concerned about troubling times on the economic front.

Thus, the question as to why gold has reached record highs is not about traditional reasons. The possibility of Kamala Harris continuing heavy spending may be the driver for this gold rush and, hence, an excellent hedge for those concerned about the future.

The bottom line is that gold may continue higher as more people head for the safety of gold with economic uncertainties.