Gold Analysis
Sample Advisory
KEN-HYCF Advisory:
IX: Gold
Gold prices often fluctuate based on market dynamics influenced by macroeconomic factors, investor sentiment, and policy expectations. We may foresee its trends under a Trump presidency:
1. Gold Could Be Going Down because of US government’s Pro-Digital Gold Stance. Trump promotes digital assets like Bitcoin (often termed “digital gold”), investors might shift their portfolios away from physical gold to cryptocurrencies, reducing demand for gold.
2. Gold prices often inversely correlate with the strength of the U.S. dollar. If Trump’s policies boost the U.S. economy and strengthen the dollar (e.g., through tax cuts or deregulation), gold prices may decline.
3. Economic Growth and Inflation: If Trump’s policies are perceived to boost growth without significantly increasing inflation, gold’s appeal as a hedge against inflation may weaken.
4. Interest Rates: Pro-growth policies may lead to higher interest rates, making gold less attractive compared to interest-yielding assets like bonds.
5. Risk-On Sentiment: A Trump administration fostering business-friendly policies could lead to higher investor confidence in equities and riskier assets, reducing the demand for safe-haven investments like gold.
Let’s Foresee Gold Trends During Trump’s Tenure:
U.S. Dollar Index (DXY): A strengthening dollar often puts downward pressure on gold prices.
Inflation Rates: Rising inflation typically supports gold; stable or declining inflation does not.
Interest Rates: Watch Federal Reserve policy for hints about interest rate movements.
Digital Asset Policies: Assess Trump’s policies on cryptocurrencies and blockchain; increased support may shift investment flows away from gold.
Increasing investor preference for Bitcoin as “digital gold” might indicate a diversion of funds away from traditional gold marke
Use technical analysis for gold and cryptocurrency markets to identify trends (e.g., support and resistance levels).
Watch market news and reports on how Trump’s policies impact institutional investment in gold and Bitcoin.
Combine fundamental analysis (macroeconomic indicators) with sentiment analysis.
A pro-digital gold stance under Trump could lead to declining gold prices due to shifts in investment preferences, a stronger dollar, and increased confidence in growth-oriented assets. Monitoring key economic and policy signals will help anticipate these trends.
Range for Gold Year 2025:
$2,417 – $2871
Expected ROI: 16%
Futures Trading advice: Cautious with a narrowed range of profit booking @0.2% to 0.22%
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