Gold has seen a 3% increase in value over the last five days, despite a general downturn in the crypto markets, and is currently priced at $2,391 per ounce this weekend. Analysts expect gold to maintain its strong performance throughout the latter half of 2024. Similar to predictions for bitcoin, analysts at Heraeus believe that a second Trump administration could further boost gold prices.
Market strategists are bullish on gold's future despite a volatile global economic landscape
Gold prices have surged this week, contrasting with a decline in bitcoin (BTC). Gold has had an impressive year so far, reaching a record high of $2,450 per ounce and climbing 17% over the past six months. Many market strategists remain optimistic about gold's prospects, with analysts from Bank of America recently forecasting that gold could hit $3,000 per ounce within the next 18 months.
Heraeus analysts specializing in precious metals believe that a potential second term for Donald Trump could benefit gold. In a recent update, Heraeus stated, "Economic policies under a second Trump administration could attract global investors to gold." They cite possible renewed trade tensions and conflicts with China as contributing factors. Additionally, Heraeus suggested that Trump might seek to "undermine the Federal Reserve's independence."
"The first term of his presidency was marked by frequent public criticisms of Fed Chairman Jerome Powell's decisions on interest rates," the Heraeus report points out. "Unofficial proposals from the Trump campaign team include measures to weaken the Fed's independence and potentially replace Powell ahead of schedule. Trump could nominate a more dovish candidate after Powell's term ends in 2026."
Despite gold's recent gains suggesting a positive outlook, the global economic landscape remains uncertain. Factors such as geopolitical tensions and potential shifts in U.S. policies could unpredictably influence market trends. As the world navigates through these turbulent times, the true trajectory of assets like gold and bitcoin remains uncertain.
What are your thoughts on gold's potential rise during a second Trump presidency? Share your opinions in the comments section below.