All Trump's Steps Give a Boost to Gold
Donald Trump, who was officially inaugurated as President of the United States on January 20, 2025, has realized several policies that we previously only heard about through his speeches. These policies are widely considered to cause the United States to experience further inflation which could even spread to become a global problem.
Trump's initial policy was to impose import tariffs on three countries, Canada, Mexico and China, where the two countries mentioned at the beginning finally experienced tariff suspensions because they were able to promise to take firm action on the migration issue by promising to place hundreds of additional troops to guard the border and prevent the entry of narcotics and illegal drugs into America. However, this does not apply to China which was eventually subject to an import tariff of 10%.
The postponement of tariffs on Canada and Mexico and the imposition of tariffs on China ultimately did not change the views of market players, many of whom actually became convinced that the world of global trade was entering a cold war session that could cause actions and reactions from countries threatened with tariffs from America.
Following the trade war that has occurred and looks like it will spread, Trump has again made further actions that have surprised many people, he plans to occupy Gaza and expel all 2 million Palestinians to be placed in Jordan and Egypt which was immediately rejected by both countries.
In this case, Trump has directly created an environment that can make gold thrive, he has created doubts and uncertainties in global trade and geopolitics which ultimately make people seek protection in stable and anti-inflationary hedge assets, and the best for all of that is Gold.
Although it experienced a correction on Thursday (6/2) due to profit taking and a slight increase in US bond yields, gold is expected to continue to experience its weekly increase this week. At 09.20 WIB, gold was trading at $2868 or only $5 away from its all-time high of $2873.
Source: (mrv@Newsmaker)
