If Trump Gets Elected, Gold Prices Could Boost Significantly: Analyst

Vinod Dsouza
Donald Trump Gold Prices
Source: sbcgold.com

Commodity analysts at Heraeus predicted that gold prices could surge significantly if Donald Trump gets elected for a second term. Gold prices are currently hovering around the $2,372 mark on Wednesday and are up nearly 10 points in the day’s trade.

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Its value surged close to 0.4% and is attracting buying pressure this week. The XAU/USD chart, which tracks the precious metal’s performance indicates that another leg-up could take its price above the $2,400 range. Several market strategists remain optimistic about gold prices next year if Trump gets elected to office.

Gold Prices Could Skyrocket If Trump Is Elected: Strategist

gold bullish
Source: Watcher Guru

Heraeus has forecasted that gold prices could significantly rise if Trump gets to office in January 2025. His previous time at the White House saw the stock and the commodity markets hit new all-time highs. Strategists remain confident that a similar run-up could be experienced in the markets if Trump gets reelected in November.

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“A second Trump administration’s economic policies may drive global investors towards gold,” wrote Heraeus. They attribute that Trump’s trade conflicts with China could make institutional investors take entry positions in gold.

“His first presidency was marked by frequent public attacks on Fed Chairman Jerome Powell’s rate-hiking decisions,” the Heraeus report notes. “Unofficial proposals from the Trump campaign team include steps to undermine the Fed’s independence and potentially remove Powell prematurely. Trump could replace Powell after his term ends in 2026 with a dovish candidate”.

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While gold’s performance suggests a promising future, Trump’s presidency is not confirmed yet. The elections will be held in November where Biden and Trump are on the ballots. The latest forecast indicates that Trump is leading ahead of Biden and could clinch the presidency this time. We will have to wait and watch which candidate Americans will cast their votes for.