Gold Prices Rise on Safe-Haven Demand Ahead of Trump Administration
Gold futures rose on safe-haven demand ahead of Donald Trump’s inauguration. Futures rose 0.4% to $2,729.70 an ounce.
The precious metal’s strong start to the year is set to continue in the short term, given the incoming administration of US President-elect Donald Trump, MUFG analysts wrote.
The incoming Trump administration will boost safe-haven demand and play into the fear-related dimension of MUFG’s bullish expectations for gold in 2025, the analysts said in a note.
The commodity acts as an important inflation hedge, and MUFG expects some inflation shocks from Trump’s policies.
In addition to gold’s position as a first-choice hedge against geopolitical instability, emerging market central banks continue to buy bullion, MUFG added.
Source: Bloomberg