Trump’s Second Presidency: Impact on Gold Prices
Donald Trump’s inauguration as the 47th President of the United States has sparked market speculation about the future of gold. With prices at US$2,706.94, following an all-time high of US$2,788 in October 2024, investors are questioning whether Trump’s policies will bolster or hinder gold’s performance in 2025.
Gold has experienced steady growth, driven by inflation fears, interest rate cuts, central bank purchases, and a weakening US dollar. Silver has also gained momentum, reaching a 10-year high of US$34 per ounce last year.
Trump’s economic plans, including increased tariffs and energy price cuts, are likely to disrupt global markets. Historically, his policies have created economic uncertainty, a factor that favours gold as a safe-haven asset. Ole S. Hansen of Saxo Bank predicts gold could reach US$2,900 per ounce this year, with silver potentially hitting US$38.
Growing global tensions, including fears of a third world war, add to gold’s appeal. As geopolitical uncertainty rises, gold remains a hedge against instability.
Gold’s resilience as a store of value positions it to thrive amid economic volatility. Whether Trump’s policies boost or challenge the metal’s performance, 2025 is shaping up to be a pivotal year for precious metals. Investors should stay informed and ready to capitalise on opportunities as market dynamics unfold.
