Given that gold is a safe-haven asset in an uncertain world, Donald Trump's administration might continue this rising trend for the metal. A return to the White House is predicted to exacerbate global trade tensions, which would likely lead to geopolitical crises and higher gold prices.
According to a Mint report, gold has already produced a strong return of almost 21% so far this year, outperforming indexes like the Nifty 50, BSE Sensex, and Bank Nifty and outpacing inflation. With gold's reputation as a safe-haven asset in times of uncertainty, Trump's presidency might continue this rising trend.According to the newspaper, the managing director of RiddiSiddhi Bullions Limited stated that "trade tensions, potential conflicts, and unpredictable policies under his leadership might drive investors toward gold as a safe-haven asset."
The Effect of Geopolitical Tensions on the Market
The stock market may be disrupted by increased geopolitical tensions during Trump's second term, according to analysts. According to Anuj Gupta, Head of Commodity & Currency at HDFC Securities, "the stock market is expected to receive various hits due to the geopolitical tension during Trump 2.0, especially in the first year of his second tenure." “Gold prices typically increase under such circumstances.”
Gupta did point out that the anticipated rise in gold prices could be restrained by persistently high U.S. dollar exchange rates.
Market Prospects for 2025
Rising U.S. Treasury yields, the strength of the U.S. dollar, and competition from digital assets like Bitcoin could all pose challenges for Indian equity markets in 2025, including the Nifty 50, BSE Sensex, and Bank Nifty, according to Gupta.
Gupta provided predictions on the short-term performance of gold. The short-term resistance level for the MCX gold rate is ₹76,800 per 10 grams. The yellow metal might hit the ₹78,000 mark if it overcomes this obstacle, he said.
According to the All India Sarafa Association, gold prices in the nation's capital on Friday surged from ₹350 to ₹79,200 per 10 grams due to ongoing jewelry purchases and the rupee's decline.
According to traders, the growing geopolitical concerns resulting from the ongoing conflict between Russia and Ukraine as well as tensions in the Middle East have further reinforced the safe-haven asset.
On Thursday, the price of the yellow gold was ₹78,850 per 10 grams.
Additionally, silver soared from ₹900 to ₹91,700 per kg, rallying for the fourth consecutive day. The white metal surged ₹3,550 per kg in the last four sessions during the week that was cut short by holidays.
The stock market may be disrupted by increased geopolitical tensions during Trump's second term, according to analysts. According to Anuj Gupta, Head of Commodity & Currency at HDFC Securities, "the stock market is expected to receive various hits due to the geopolitical tension during Trump 2.0, especially in the first year of his second tenure." “Gold prices typically increase under such circumstances.”
Gupta did point out that the anticipated rise in gold prices could be restrained by persistently high U.S. dollar exchange rates.
Market Prospects for 2025
Rising U.S. Treasury yields, the strength of the U.S. dollar, and competition from digital assets like Bitcoin could all pose challenges for Indian equity markets in 2025, including the Nifty 50, BSE Sensex, and Bank Nifty, according to Gupta.
Gupta provided predictions on the short-term performance of gold. The short-term resistance level for the MCX gold rate is ₹76,800 per 10 grams. The yellow metal might hit the ₹78,000 mark if it overcomes this obstacle, he said.
According to the All India Sarafa Association, gold prices in the nation's capital on Friday surged from ₹350 to ₹79,200 per 10 grams due to ongoing jewelry purchases and the rupee's decline.
According to traders, the growing geopolitical concerns resulting from the ongoing conflict between Russia and Ukraine as well as tensions in the Middle East have further reinforced the safe-haven asset.
On Thursday, the price of the yellow gold was ₹78,850 per 10 grams.
Additionally, silver soared from ₹900 to ₹91,700 per kg, rallying for the fourth consecutive day. The white metal surged ₹3,550 per kg in the last four sessions during the week that was cut short by holidays.
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