President Donald Trump’s possible return to the White House is expected to intensify global trade tensions, accelerate geopolitical crises and likely push up gold prices.
Gold has already delivered strong returns of around 21% since the start of the year, significantly outperforming benchmarks such as the Nifty 50, BSE Sensex and Bank Nifty, as well as outpacing inflation, according to the Mint report. Given gold’s status as a safe-haven asset during times of uncertainty, a Trump presidency could sustain gold’s upward momentum.
“Trade tensions, potential conflicts and unpredictable policies under his leadership could push investors towards gold as a safe-haven asset,” the report said. Quoting the Managing Director.
Geopolitical tensions and market impact
Analysts are wary of heightened geopolitical tensions that could disrupt stock markets during President Trump’s second term. Anuj Gupta, Head of Commodities and Currencies at HDFC Securities, said, “During Trump 2.0, and especially in the first year of his second term, we expect the stock market to take a variety of hits due to geopolitical tensions. ” he said. Prices usually go up. ”
However, Mr. Gupta noted that stubbornly high US dollar interest rates could dampen the expected rise in gold prices.
Market outlook in 2025
Mr. Gupta said that Indian stock markets such as Nifty 50, BSE Sensex and Bank Nifty will also hit hurdles in 2025 due to factors such as rising US bond yields, strong dollar and competition from digital assets such as Bitcoin. He said he could face it.
Looking to the future, Mr. Gupta offered some insight into gold’s short-term performance. “In the short term, MCX gold rate will face the following resistance.” INR76,800 per 10 grams. If you cross this hurdle, the yellow metal may come into contact with the wall. INR78,000 mark,” he predicted.
On December 27th, gold prices skyrocketed. INR350～ INRAccording to the All India Sarafa Association, 10 grams stood at $79,200 in the national capital on Friday on the back of continued buying by jewelers and a weaker rupee.
Traders said safe assets were also strengthened by escalating geopolitical tensions stemming from the ongoing Russia-Ukraine war and tensions in the Middle East.
Thursday’s yellow metal is INR78,850 per 10 grams.
Rising for 4 consecutive sessions, silver also soars INR900～ INR91,700 per kg. White metals soar during holiday-shortened week INR3,550 per kg for the last four sessions.
