Where is gold going, why does it descend and appear globally and locally, and what does this have to do with the dollar? We will tell you all the details in this video, so stay tuned until the end.
In recent days, we have seen and followed the “iSagha” platform, which specializes in gold, which said that the global prices of the yellow metal witnessed a decline, and this happened after the announcement of Donald Trump’s victory in the US presidential elections.
We can say that the change in the form of American political administration is always accompanied by a noticeable impact on the internal and foreign policies of the United States, and of course this is reflected in all markets and some commodities such as gold, which is considered a safe haven for investors.
I mean, we can say that Trump’s victory in the elections had a negative impact on the gold market and also had a positive impact on the dollar and its price rose compared to many other currencies. This is because Trump’s policies support the strength of the dollar and the return of the green currency to its glory. In this case, gold will decline because the relationship between them is different. The opposite, meaning if the dollar increases, gold decreases and vice versa.
All we said was a reason to make investing in the dollar more attractive, and in return, the demand for gold as a safe haven decreases, and thus the prices of the yellow metal decline.
For this reason, the trends of the gold market depend on the global economic and political conditions, and Trump’s decisions also play a very important role in directing the gold market, but other factors favor the policies of the new president of the United States of America, affecting global gold prices, which include the balanced peaceful military orientation, This means that Trump’s policy aims to limit direct military interventions in foreign wars, and also to strengthen the United States’ defense capabilities, and his administration has also focused on targeted measures against threats while ending long-term conflicts, including Afghanistan and Iraq.
Among the reasons also are Trump’s oil production policies, because he supported enhancing oil production domestically, with the aim of reducing dependence on oil imports and strengthening the American economy. This policy strengthened the dollar by reducing the trade deficit, and this contributes to the dollar being stronger compared to other currencies. Therefore, the strength of the dollar contributes to the decline in gold prices.
The third thing is Trump’s position on the Ukrainian war and its impact on the American economy, because he adopted a strategy of reducing the economic burdens resulting from global conflicts, such as the war in Ukraine, and for this reason he called on Europe to bear part of the costs of these wars, and this contributed to the stability of the American economy and strengthened the strength of the dollar. Reducing the demand for gold as a safe haven.
The last reason that contributed to the decline in gold prices is the impact of the independent US Federal Reserve policy on interest rates and gold, because the US Federal Reserve is considered an independent entity not directly linked to the political decisions of the president, and the US Central Bank relies on monetary policies aimed at achieving internal economic stability, so this is expected. Interest rates are very high, which usually contributes to a decline in gold prices.
