Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Asset Watch

How could gold trade under Trump?

Thursday, January 22, 2025

 

With Donald Trump entering the White House for a second term, he inherits a resilient U.S. economy and a stock market near record highs. However, with the U.S. dollar and Treasury yields soaring in recent months, financial conditions have tightened considerably, which is bearish for gold.

As a result, does the yellow metal sink or swim during Trump 2.0?

Two-headed monster

Higher interest rates hurt gold because it’s a non-yielding asset. And when bonds offer investors higher potential returns (especially inflation-adjusted or ‘real’ returns), some market participants will favour fixed income.

Similarly, a stronger U.S. dollar makes it more expensive for foreigners to purchase gold because futures contracts are priced in USD. Consequently, both fundamental headwinds often depress gold’s value and that’s why the U.S. Fed has so much impact on investor sentiment and positioning.

Should gold investors be worried?

While high interest rates and a strong U.S. dollar may seem problematic, it could be a blessing. Since the metrics are close to their recent historical highs, corrections for both could fuel gold’s next meaningful rally. Furthermore, gold rose by 64% during Trump’s first term, so there is little evidence that his policies hurt gold in the long run.

Plus, if the Fed turns dovish again and some of Trump’s USD enthusiasm wears off, gold should be a major beneficiary.

Key levels to watch

Noticeable throughout the 2019 to 2020 bull run was the importance of the five and 10-month moving averages. If you analyse the blue and yellow lines near the middle of the chart, you can see that both acted as support en route to higher highs.

Likewise, the price action on the right side of the chart shows how gold has closed the last 15 months above its 10-month MA and is on pace to make it 16 in January. In addition, the 5-month MA has been nearly as strong, with it holding for 14 of the last 15 months.

Add it all up, and the technicals signal a robust uptrend that should continue for the foreseeable future.

Golden guidance

A historically winning approach has been to stay long gold above the 10-month MA. It currently stands near $2,525, and until a breakdown occurs, the bulls deserve the benefit of the doubt.

It could be wise to ride the volatility and place a stop-loss order slightly below the 10-month MA to limit losses if the trade doesn’t unfold as planned.


Site by Pink Green
© ADSS 2025


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.