Who is better for gold – Trump or Biden?

Inflows into safe investments such as gold are likely to be seen. This is because crises and chaos usually drive the price of gold. In addition, the US Federal Reserve is expected to cut interest rates twice this year and inflation is weakening. The consumer price index has fallen for three months in a row. Yields on ten-year government bonds have fallen and the US dollar index has also slipped. These are all positive events for the gold price. If you look at history, gold yields were higher when Congress was governed by Democrats. There was an average increase in the price of gold of almost 21 percent. Under Republicans, however, the price of gold rose by an average of only 3.9%. This is because Democrats are looser when it comes to spending money and so debts and the budget deficit are rising, while at the same time the US dollar is weakening. The price of gold rose before the US presidential elections in 2016 and 2020.

On May 20, the price of gold reached a record high of USD 2,450 per ounce under President Biden. Sanctions against Russia prompted various developing countries to increase their gold reserves. Trump was already putting pressure on China, including Biden. As president, Trump had started a trade war with China. Dependencies on China are to be reduced and Western supply chains are to be strengthened. De-dollarization has become a buzzword. In the first three months of 2024, China alone divested itself of around 50 billion dollars in the form of US government bonds and other bonds. In any case, Goldman Sachs has advised investors to buy gold as a hedge against a Trump election victory. The shares of gold companies such as Fury Gold Mines or Tudor Gold would not be a bad idea either.

Fury Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/fury-gold-mines-ltd/ – has projects in Nunavut and Quebec. The Eau Claire project in Quebec has seen a pleasing increase in resources.

Tudor Gold’s – https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ – Treaty Creek project is a prospective gold and copper property in British Columbia.

Current company information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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