Donald Trump’s famous 24-karat sinks are about to get a lot more expensive. As we head into the 2024 election, gold is gaining fervor among investors who see potential gains regardless of who wins the Trump vs. Harris showdown. After a ~16% year-to-date run, the shiny metal hit record-high prices earlier this month. Investors are swarming in, leading to the highest Q2 demand since 2000.
- During Trump’s term, gold surged over 50% against the dollar — and Wall Street believes a second Trump presidency would be good for the commodity, thanks to tax cuts, tariffs, and inflationary pressures.
- Under the Biden administration, gold is up ~29%, driven by inflation, elevated interest rates and increased government spending. Geopolitical tensions could push prices even higher.
It was all yellow: Beyond election outcomes, investors see ballooning federal debt and a potentially weakening dollar as reasons to buy gold. With prices already reaching new records amid Iran-Israel tensions, this election cycle might instead bring a yellow wave. As one JPMorgan analyst tells the Financial Post, “Gold sits in a prime position to rally,” regardless of who takes the White House.
