Markets responded positively to this.The election of Donald Trump a 47th President of the United States of AmericaEspecially regarding industries and Bitcoin. Above all, it is Elon Musk who is happy, whose assets have soared, guaranteeing him a profit of $13 billion in just one day after Trump’s victory.
But there is one market that has been negatively affected by the Trump effect: thatoroIn which a decrease of approx. -7% After years of continuous development.
Deutsche Bank confirmed that the precious metal’s performance was worse than at least 13 other US presidential election windows. The reasons behind this trend are varied.
Trump’s recipe reassures markets.
“People only care about sleeping when Nothing else workssaid Rob Howarth, senior director of investment strategy at US Bank. “Stocks are performing well; solid returns are seen even for low-quality corporate credit securities. Under these conditions, we are less likely to look for alternative sources of portfolio growth.”
Bloomberg Writes that Trump’s agenda is included. Tax cut, Financial irregularities And tariffs are forcing hedge funds to invest in sectors that could benefit, such as big banks and domestic manufacturing.
Gold fever subsides.
In practice, there is optimism about the performance of the economy and hence we avoid investing in gold, which is a safe haven, in times of uncertainty. Gold rose more than 30 percent in the year before the US election, which set records thanks to geopolitical and economic risks that lured investors to the good old yellow metal. But that’s not all: apart from speculators, several states have also chosen to increase their gold reserves to create a buffer effect in case of unexpected economic events. Major investors include, but are not limited to, China, Turkey and Poland. This new gold rush has literally sent prices sky high.
But justifying the decline in the price of gold (which is currently down -2.8 points) is also the strengthening of the dollar in the days following Trump’s re-election, as the metal is denominated in US currency. And the U.S. economy, net of the auto sector’s woes, appears to be enjoying excellent health with declining inflation and a Federal Reserve that doesn’t seem inclined to cut interest rates any further.
“Given the current strength of the U.S. economy, going to gold would be the opposite choice,” commented Matt Maskin, co-head of investment strategy at John Hancock Investment Management. “At this point, the perception is that there are very few risks fundamentally and geopolitically. It’s hard to go against the grain in such an environment.”
However, given Trump’s unpredictable positions, some long-term uncertainty remains.
Ukrainian knot
But the falling trend in gold prices is also considered a safe haven. Perspectives on the War in Ukraine. Donald Trump will officially take office on January 20, 2025, but some details regarding his road map for peace between Ukraine and Russia have already been leaked. Trump’s plan for peace in Ukraine includes handing over all occupied territories to the Russians. If this proposal is passed, it will be a distorted peace for the Ukrainian people. But it’s enough to reassure markets that the war has had significant ramifications, essentially.Energy And on that grain.
