Here’s What a Trump Victory Could Mean for Gold Prices

The Trump Factor in Gold Markets

With the U.S Presidential Election now just over a week away, most major polls show Vice President Kamala Harris and former President Donald Trump in a very close race for the popular vote.

However Wall Street seems increasingly convinced that Donald Trump is going to win – And the prospect of that outcome is whipping up an explosive money-making storm as traders begin pricing in the potential return of the so-called “Trump Trade.”

According to analysts at GSC Commodity Intelligence – the Trump Trade refers to a set of highly profitable money-making trends and market behaviours that emerged during Donald Trump’s previous presidency – as savvy traders positioned themselves to benefit from his “Make America Great Again” policies and economic agenda.

Historically, U.S Elections are known to be extraordinary macroeconomic events that are guaranteed to move the Gold market significantly – largely due to political uncertainty and the potential for shifting economic policies.

And this time around should be no different!

In the weeks leading up to the 2016 U.S Presidential Election between Donald Trump and Hillary Clinton – Gold prices surged furiously to score multiple back-to-back record highs.

Gold Enters Supercycle as Trump’s Tariff Plans Ignite Inflation Fears

And guess what? And that’s exactly what we’re seeing play out again right now.

At the time of writing on Tuesday, Gold prices skyrocketed to a new all-time record high of $2,771 an ounce, surpassing the precious metals previous all-time high of $2,758 an ounce reached only a week earlier – extending its gains by an impressive 54%, from this time 12-months ago.

The big question now is: What Will A Trump Victory Mean For Gold Prices Ahead?

In a note to clients, analysts at GSC Commodity Intelligence wrote “that a Trump victory could ignite a new Supercycle in Gold prices off the back of a multitude of economic factors, with the most monumental being his stance on tariffs”.

It’s no secret that Donald Trump has already signalled a return to his “America First” rhetoric, with a renewed focus on imposing tariffs. In particular, Trump has floated the idea of a 60% tariff on all Chinese goods – a move, which could ultimately reignite global inflation and increase demand for safe-haven assets like Gold.

Interestingly, during Trump’s previous presidency Gold prices experienced exponential growth. When Trump took office in January 2017, Gold was trading near $1,209 an ounce. By the end of his term in January 2021, Gold was hovering near a high of $1,957 an ounce.

Regardless of whoever wins the U.S Presidential Election on November 5 – the fact, that both candidates are proposing inflationary policies, guarantees to unleash one of the most bullish backdrops for Gold prices ahead, the world has ever seen!