Trump's effect on gold..? Surprise awaits indians tomorrow!

Gold price has recorded a significant increase since november 6, that is, after trump won the presidential election, gold price fell significantly, but after trump took office, he issued more than 70 orders on the first day of his inauguration, including taxation, regulation, and changes in citizenship rules. In response, the stock market and the dollar value have fallen, while gold and Bitcoin have risen in trading on Tuesday. The price of gold, which has been sluggish since november 6, shocked many by reaching $ 2,726 in today's trading. The rise in gold prices is expected to create uncertainty in the market.
Although there is no change in the price of gold in the indian retail market today, the price has increased in the international market. This increase will increase in the indian market tomorrow. The last time the price of gold was $ 2742 per ounce on november 5, it has increased to $ 2728 today after almost 2 months. Today, in one-day trading, the price of gold in the international spot market has increased from $ 2710 to $ 2728. This is a dramatic increase recorded after a long time. Due to this, the price of gold in india may increase sharply tomorrow. So if you are planning to buy gold, buy it today. US President Donald Trump's announcement that he will impose tariffs on both canada and mexico from february is a major factor in the decline in the investment market. While it was expected that trump would wage a trade war on China, trump has hit canada and mexico first. As a result, gold has now become a safe investment asset for investors. Adding further strength to the rise in gold prices, profits in US Treasury bonds have also decreased. The main reason for this decline in returns is that market experts predict that the Federal Reserve bank will decide to cut interest rates twice this year. Due to this, investments are also flowing out of the bond market.

In the US, inflation is moderate, so if the country's central bank cuts interest rates twice, the yield on US government treasury bonds will decrease. This is a common thing, but investments that leave the bond market usually go to the stock market, but now they are concentrated in gold, this is due to Trump's tax measures.
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Sowmiya Sriram

21/01/2025 01:21 PM