Trump drove up the price of Gold. Could he now crash it?

Gold is a ‘sleeping giant’. History shows that for years, if not decades, gold prices move in a narrow range, until suddenly spiking. Between October 2011 and October 2022, the gold price trended lower and remained in the $1,700 range. From November 2022, gold saw a golden run with the price jumping from $1,700 to make an all-time high record of $3,500 this month.

The last time the sleeping giant woke up for the sprint was from October 2018, when gold was $1,130 to reach $1,984 in August 2020, a 75% gain in less than two years.

In the recent bull run in gold, the big up move started in 2023 when gold rose 13%. In 2024, the same story unfolded, and gold gained 27%.

If you are wondering what led to the sudden interest in gold, we have curated them here. While the reasons that boosted gold in 2023-24 remain valid even today, there is one more to consider in 2025: Trump tariffs.

Trump Tariff and Gold Price

All thanks to Trump tariff announcements, including the reciprocal tariffs on all countries, gold is already up by 25% this year.

The world knows that the Trump tariffs will potentially dampen economic activities. The biggest concern for global economies is the trade war between the two largest economies, the US and China.

The trade war is predicted to disrupt global supply chains and potentially impact bond and currency markets due to economic uncertainties. Such a scenario is the perfect breeding ground for the gold.

But gold seems to have hit a speed-breaker. After touching $3,500 on April 22, gold has lost almost $200 and trades around $3,300 now. In India, the gold rate today is Rs 95,320 after touching Rs 1 lakh for 10 grams of 24 carat gold on April 22.

Gold Headwinds Gather Pace

So, what could be the headwinds that suddenly led to the selling pressure in gold?

Trump declared that he will go slow on taking stiff measures against China as part of his tariff tirade. Even China is taking measures to de-escalate the trade war. In reality, confusion persists as both countries are sort of contradicting themselves.

But the fact that the trade war is not escalating seems to have worked,

 » Read More

Related Articles

ITR due date extension: Over 7 crore returns already filed, income tax department urges remaining taxpayers to act

ITR Due Date and Income Tax Return Filing Extension 2025: The Income Tax Department on Monday announced that over 7 crore income tax returns (ITRs) have already been filed for Assessment Year (AY) 2025-26, as the filing deadline of September 15 draws to a close. ALSO READNo ITR deadline extension for AY 2025-26? Here’s what

GST boost: Value apparel retailers see 20% growth in festive sales

Some of the country’s top value apparel retailers such as V-Mart Retail, V2 Retail and Vishal Mega Mart expect festive sales to grow by 20% this year on the back of GST cuts, top executives said.  The number is almost double of the about 10-12% sales growth that the chains have seen in the last

Equity MFs deploy Rs 8,900 crore cash in August

The cash balances of equity mutual fund schemes dropped from Rs 1.85 lakh crore in July to Rs 1.76 lakh crore in August as several AMCs capitalized on block deal opportunities, according to a report by Nuvama Institutional Equities. ALSO READMarkets end lower: Nifty holds 25,000, Sensex down 100 points; Asian Paints, M&M see deep

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

ITR due date extension: Over 7 crore returns already filed, income tax department urges remaining taxpayers to act

ITR Due Date and Income Tax Return Filing Extension 2025: The Income Tax Department on Monday announced that over 7 crore income tax returns (ITRs) have already been filed for Assessment Year (AY) 2025-26, as the filing deadline of September 15 draws to a close. ALSO READNo ITR deadline extension for AY 2025-26? Here’s what

GST boost: Value apparel retailers see 20% growth in festive sales

Some of the country’s top value apparel retailers such as V-Mart Retail, V2 Retail and Vishal Mega Mart expect festive sales to grow by 20% this year on the back of GST cuts, top executives said.  The number is almost double of the about 10-12% sales growth that the chains have seen in the last

Equity MFs deploy Rs 8,900 crore cash in August

The cash balances of equity mutual fund schemes dropped from Rs 1.85 lakh crore in July to Rs 1.76 lakh crore in August as several AMCs capitalized on block deal opportunities, according to a report by Nuvama Institutional Equities. ALSO READMarkets end lower: Nifty holds 25,000, Sensex down 100 points; Asian Paints, M&M see deep

Go for rider to cover adventure sports

By Meet Kapadia Think of rafting down a churning river or skiing down a slope and suddenly facing something untoward. Regular medical and travel insurance often does not cover these high-risk pursuits. Activities like rafting, paragliding, bungee jumping and mountaineering usually belong into a “hazardous sports” bucket, which is typically excluded unless specifically opted for.

Car firms may go for capacity hike

As cars and sports utility vehicles (SUV) are set to become cheaper following cuts in Goods and Services Tax (GST) and compensation cess, auto manufacturers are likely to revisit their capacity expansion plans to support the additional demand.   After seeing a 2.4% year-on-year decline in the five months of the current fiscal, the passenger vehicle