GOLD NEWS

What Trump's protectionist policies mean for gold

Tue Nov 26 2024

The gold price has been on a rollercoaster ride since Donald Trump's presidential win. In the week that followed the election, the gold price dipped from $2,741 to below $2,600 an ounce, a nearly 6 per cent fall. The clear election result reduced demand for the yellow metal as a haven asset, and investors surged into riskier ‘Trump trades’, such as crypto and US equities. 

Markets also began to digest what a second Trump presidency could mean for the economy. The consensus as it stands is â€˜higher inflation’, thanks to a combination of tariffs and potential tax cuts. According to the CME FedWatch tool, traders now only expect three quarter-point cuts from the Federal Reserve next year, taking interest rates to 3.75-4 per cent by the end of 2025. 

Source: https://www.investorschronicle.co.uk