Gold’s Safe-Have Appeal Strengthens Ahead of Trump Inauguration
Gold risks appear skewed to the upside ahead of Trump’s inauguration, as investors brace for policy changes that could have economic implications, said Pepperstone research strategist Ahmad Assiri.
Trump’s executive orders will likely dictate gold’s direction in the coming weeks, he added. Gold is already up 3% year-to-date, above $2,700, amid political and trade uncertainty.
If Trump imposes tariffs that disrupt trade flows and increase economic volatility, gold’s safe-haven role will be strengthened, Assiri said.
Recent U.S. inflation pressures have added to gold’s appeal, as the metal has historically served as a reliable hedge against inflation.
A phone call between Trump and China’s Xi over the weekend temporarily eased risk premiums in Asian markets, but the potential for a trade war underscores gold’s enduring safe-haven demand, he said.
Source: Bloomberg