The global situation has been in turmoil in recent years, with factors such as the Russia-Ukraine war, conflicts in the Middle East, and the potential for economic recession further driving the continued rise of safe-haven assets like gold. For example, on the eve of the US presidential election, due to market uncertainty about the presidential candidate, gold hit a new all-time high of $2,790 on October 30 last year.
However, after Trump's election was confirmed, gold also saw a correction and adjustment in November last year, falling to a low of $2,563, a drop of 9.2%. But with Trump repeatedly claiming he will launch a trade war, and the Fed lowering interest rate expectations, gold prices have also rebounded, reaching a high of $2,758.67 today, just under 2% away from a new high.
The well-known financial information website Economies.com also stated in its latest article today that gold is trying to break through the resistance line of the bullish channel, and it is expected that the gold price will continue to rise in the near future:
The gold price has further risen after the start of trading today and is attempting to break through the resistance line of the bullish channel, supporting our expectation of a continued bullish trend in the gold price in the short term. The next target for the gold price is the recent record high of $2,790.00 per ounce.
Expert: Trump's Tariff Threat Looms, Investors' Hedging Awareness Heightens
Just 20 days after taking office, Trump announced plans to impose the previously threatened 25% tariffs on Mexico and Canada by February 1, and reiterated his view that the two neighboring countries are allowing illegal immigrants and drugs to flow into the US, stating in the Oval Office when answering reporters' questions:
We are considering a 25% tariff on Mexico and Canada because they are allowing a massive influx of people into the United States, and I think we will take action on February 1.
Further Reading: Quick Recap of Trump's Inaugural Address: No Mention of Bitcoin Crash, Crackdown on Illegal Immigration, Tariff Hikes, Cancellation of Gender Diversity
Although Trump has not yet signed any executive orders related to tariffs, it is clear that he has already hinted at it, and an anonymous financial expert told BlockTempo:
Trump's executive orders will be signed gradually, so the impact of the tariffs will increase gradually and will not erupt all at once. So investors have already started buying gold for hedging.
High tariffs are harmful to the economy in the medium and long term, so if a country implements high tariffs extensively, it will actually damage economic interests and the level of economic activity
Will Bitcoin Be the Next Surge Target?
On the other hand, as funds gradually shift towards safe-haven assets, will Bitcoin, known as "digital gold", also surge?
On this, an anonymous financial expert told BlockTempo:
Based on past experience, gold will take priority in rising when the demand for hedging (war) increases, while Bitcoin will pick up the tail end of the hedging demand.
But it should be noted that in times of war and financial crisis, Bitcoin still follows the trend of the global stock market and falls
Furthermore, before taking office, there were many reports of Trump's pro-cryptocurrency policies, and cryptocurrency-related organizations have been set up in various government departments in the US. The cryptocurrency-related policies that the Trump administration has been gradually releasing may become a catalyst for a Bitcoin surge.
