How High Can Gold Rise If Trump Continues To Crash The Stock Market

Juhi Mirza
Mountain peak with shining sun rays and crowd celebrating new gold price
Source: Watcher Guru

Donald Trump is adamant about imposing tariffs on nations. His strict tariff stance has severely impacted the US economy, adding pressure on nations, which in turn has negatively affected the US dollar. The global stock markets have also been delivering major losses, responding to the fierce tariffs that have been levied by Trump on major international imports. This entire scenario has been favoring safe haven assets like gold and Bitcoin, which have emerged as victory assets amid the recent political overhaul. Will the brewing stock market crash continue to push gold higher than ever? If yes, then how high will the asset go? Let’s find out.

Also Read: Trump Crashes the Stock Market After Public Attack On Powell’s Policies

Is a New Stock Market Crash Coming?

Donald Trump is currently in the process of levying tariffs on nations. These tariffs have been implemented in efforts to bolster the US economy. However, the development has taken an odd turn, which has ultimately led the markets to crash as fears regarding a brewing trade war caught the global markets’ attention. The countries have also been issuing counter tariffs, which have also taken a toll on the US dollar.

There have been several theories in the past narrating how Donald Trump has been deliberately crashing the stock market. A notable analyst on X, Amit, shared how Trump is playing a pivotal role in crashing the stock markets in order to increase volatility. This will help strengthen bond purchases instead of equities, thereby stabilizing the rising US debt issue.

“1. We have $7T of debt we need to pay in the next 6 months. If we don’t pay it, we’ll have to refinance. 2. The Trump admin does NOT want to refinance at a 4%+ rate. The way to do that is to create massive uncertainties—aka tariffs. Which can slow down growth in the short term. Get the bond market to start BUYING bonds ASAP because of how scared they are of touching stocks (causing yields to fall, which is what we need to refinance the debt), and then that gives the Fed the authority to lower rates, which continues to bring yields down. So, although conventional wisdom says tariffs are inflationary,. And the 10-year should be spiking on more tariffs—it’s actually going down because it’s bringing so much uncertainty to equity markets that people are selling stocks and buying bonds!”

Also Read: Cryptocurrency Market Sheds $760 Billion After Trump Entered White House

Biggest Stock Market Crash Yet To Come?

Stock market crash visualization with declining red chart over city skyline silhouette against sunset backdrop
Source: Watcher Guru

In a recent interview, Senator Elizabeth Warren warned of a significant stock market crash, which may sweep the markets away if Trump fires Jerome Powell.

Trump has earlier referred to Powell as “Mr. Too Late” and “major loser” for not lowering interest rates.

Gold Continues To Spark Rallies

In the middle of major economic uncertainties sparked by Trump’s US tariff regime, gold is climbing and embracing new price trajectories at the moment. Gold is currently sitting at $3468, eyeing another high spot of $3500.

Notable finance expert Rashad Hajiyev had shared how gold has the power to surge as high as $5K in the near future.

Per AI, if Trump continues to impose heavy tariffs on nations, then it may trigger a gold rally, pivoting investors to embrace gold as a safe haven asset. This will compel XAU to hit a new high spot of $5000/oz if Trump continues to be aggressive on nations.

GOLD STATS
Source: ChatGPT

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