Gold Has Been Soaring Since Trump’s Election. It May Keep Climbing.

Core Viewpoint - Gold has experienced a significant increase of 45.2% since November 5, 2024, marking a record for the year following a presidential election, with expectations for continued gains based on historical trends [3][6]. Group 1: Gold Price Performance - Gold's price surge of 45.2% since November 5, 2024, surpasses previous records set during the Obama and Carter administrations, which saw gains of 43.6% and 31.8% respectively [3][6]. - The price of gold attempted to break the $4,000 level, settling at $3,992.90, with 49 new records established in the past 10 months [7]. Group 2: Factors Driving Gold Prices - Anticipation of swift interest rate cuts by the Federal Reserve in 2025 has contributed to the rally in gold prices, enhancing its appeal compared to other safe-haven assets [4][6]. - Increased demand for gold from global central banks and private investors, particularly in China and Japan, has positively influenced gold prices [4][6]. Group 3: Political Influence - President Trump's criticism of the Federal Reserve and calls for lower interest rates have driven investors towards gold as a safe haven, amid geopolitical uncertainties [5][6]. Group 4: Future Projections - Despite the current surge in gold prices, Capital Economics forecasts a decline to $3,500 per ounce by the end of 2026, suggesting that the current market may be experiencing a bubble [6].