Is Donald Trump Good for the Price of Gold?

Towards the end of July the price of gold steadied after US President Donald Trump who criticized the Federal Reserve’s interest rate tightening policy. In more recent events, Trump doubled tariffs on Turkey’s steel and aluminium. In the US gold prices have hit a 17-month low, falling down to the $1,200 mark and are increasingly […]

Towards the end of July the price of gold steadied after US President Donald Trump who criticized the Federal Reserve’s interest rate tightening policy. In more recent events, Trump doubled tariffs on Turkey’s steel and aluminium.

In the US gold prices have hit a 17-month low, falling down to the $1,200 mark and are increasingly trading lower. In other countries the price of gold continues to rise.

Daniel Marburger, Managing Director at Coininvest told Finance Monthly: “Gold prices soar in times of uncertainty, which is why many people expected gold price to fall once Trump was elected.

“Throughout his presidency, Trump has proved to be a controversial character and we’ve seen movement in gold price reflect this.

“He has had a positive impact on the value of the US dollar which usually lowers the gold price, however, current trade wars Trump has started with the EU, Canada and China are offsetting this, slowing the decline.  

“High interest rates make gold a less attractive investment, unlike other investments it doesn’t offer interest. It will be interesting to see how the US president’s decisions will impact the value of gold throughout the rest of his presidency – especially as we approach the mid-term elections in November.”

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