FX.co ★ Trump’s presidency consequences or we know reason gold rises

Interestingly, US President Donald Trump looks like the best friend of everyone. In Russia everyone is excited about him. The European Union thanks him for solidarity, and Nato praises him for expansion and an increase in funding. And that is not a full list of Trump’s ‘good deeds’. Experts said he was the major gold helper!

So, uncertainty, that is observed after Donald Trump has become the 45th President of the United States, is the main reason for the precious metal growth. Specialists express opinion that the trend will be observed throughout the whole presidential term. Moreover, taking into account that Trump is impulsive, at some moments gold prices may climb to record highs.

"If there's a way to measure uncertainty in the next four years, we would say it's basically off the charts at this point in time," VanEck Australia's director of investments and portfolio strategy, Russel Chesler said.

"Over the last couple months, everybody's become obsessed with Trump, his actions, statements and of course his tweets. We think this is going to continue. It's an up-and-down ride and these risks are going to be positive for gold going forward," Chesler added.

Moreover, there are other factors supporting gold, for instance, Brexit and elections in several European countries. During such periods of uncertainty safe haven assets rise. Surprisingly, since Trump’s victory and up to mid-February gold prices rebounded 7%.