Everyone who has invested in gold probably knows that the state of the commodity is at a low point on the charts currently. Many people are hoping that gold prices will begin to rise so that the gold market can move from bearish to bullish. While there are several points on the horizon that might help to make this happen, some people are hoping that President-elect Trump is going to be a huge saving grace for gold.
A Look Back
In 2016, gold prices peaked at $1,372 per ounce in August. The fluctuations of the market were largely dependent upon the events that occurred around the world. The two most prominent factors that seem to stand out were Brexit and the shocking election in the United States. Now, it seems as if the shocking election might lead to gold’s comeback.
Looking at the wild ways that events throughout 2016 affected the price of gold, it is easy to understand the apprehension that some people have. It is also important to note that Trump getting into the White House could also have a very nice effect on gold prices but only time will tell.
Thinking about Trump’s actions, one of the most memorable points is that he takes to Twitter to rant. Those 140-character or fewer tweets have already shown to have an impact on various markets. The way that these rants and tweets will impact gold and other markets is yet to be seen, especially since no president has used Twitter in the same manner as President-elect Trump.
Prices Could Go Up
There are two schools of thought about how Trump could affect gold prices once he is in office. One is that Trump will strengthen the economy, which will lead to a construction boom. This would send gold prices soaring if there aren’t any unexpected events occurring around the world. This would be good news for people who have been holding on to gold that was purchased while the precious metal was at a low because they would have the opportunity to sell high within the next year.
…Or Prices Could Remain at an Even Keel
The second school of thought is that people are going to continue to be unsure about what will happen because of Trump’s dramatic reactions to events. This could have people pouring money into gold, but the prices of gold might stay at an even keel for the time being. This would make gold a nice investment for people who are looking for long-term gains instead of short-term profits because they would have more time to buy low and then could wait to sell high.
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