Since the inauguration of President Donald Trump, gold prices have been soaring, with the Financial Times reporting on the 16th (local time) that gold is leading the 'Trump trade.'
On the 13th, the price of gold skyrocketed to $2,942.70 per ounce, marking a 7% increase since President Trump's inauguration. Analysts interpret this as driven by the trade war initiated by Trump and ongoing concerns about the impact on the global economy, which has led to a sustained demand for gold as a safe haven.
In contrast, during the same period, the Standard and Poor's 500 index on the New York Stock Exchange rose by 2%, while U.S. Government Bonds and Bitcoin, which led the 'Trump trade' following President Trump's election in November last year, turned bearish.
Following President Trump's election, Bitcoin prices, which broke through the $100,000 mark for the first time from the $75,000 range, saw a weakening of upward momentum since the inauguration. Bitcoin's price retreated from about $107,000 on the day before the inauguration to approximately $97,000. The dollar index, which indicates the value of the dollar against six major currencies, fell from 109 to about 106 just before the inauguration, while the yield on 10-year U.S. Government Bonds decreased from 4.62% to 4.48%.
Traders and banks have been transporting gold from the world's largest physical gold trading hub in London to the United States, resulting in a surge in gold reserves in New York. It has been reported that gold reserves in New York have increased by 116% since the last presidential election.
Nikki Sills, an analyst at MKS Pamp, a gold refining company, said, "Gold is 'Trump's tariff trade'," noting that there is a positive correlation between the imposition of tariffs and rising gold prices.