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Of course, many factors influence gold prices, but political shifts can create some ripple effects.
GOBankingRates spoke to experts to find out how a Trump wincould potentially affect gold prices.
Trumps Economic Policies and Gold
Trumps approach to deregulation might affect investor confidence.
And their confidence, or lack of it, could have an impact on gold prices.
This higher demand would mean a higher price.
Brandon Thor, CEO ofThor Metals Group, offered a more nuanced perspective.
This could lead to a temporary dip in gold prices and an increase in stock values.
Thor also believes that underlying economic issues wont disappear overnight.
Thor suggests that Trumps options for preventing a market correction would be limited.
However, Thor warns that such actions could lead to a crash in the dollars value and accelerate inflation.
He added that when the dollar sinks, gold typically rises in value.
He admits stocks might get a temporary boost from deregulation and tax cuts.
Julia Khandoshko, CEO atMind Money, agreed that Trumps victory may increase global instability.
His projects to combat migration, China, and interference in European politics will support gold, Khandoshko said.
Again, all of this will mean higher gold prices.
When a currency seems unstable, people tend to turn to gold instead.
If Trump successfully lowers interest rates, that could also fuel demand for gold.
If interest rates are too low, investors might prefer gold to keeping their money elsewhere.
He pointed out that during Trumps last term in the White House, gold prices took a leap.
This mightve been thanks to Trumps trade disputes with China, along with some other strained international relationships.
So, if Trump wins again, could gold prices go up?
Maybe, although Materazzi believes that no matter who wins in November, gold prices will continue to rise.
Regardless, guessing where the markets headed is like trying to predict the weather and maybe even more complicated.
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