Why will gold prices fall under trump?

Gold prices are likely to fall under Trump due to several factors:

1. **Tariff Policies**: Trump's plans to impose tariffs of 20% on all imports and up to 60% on Chinese goods could lead to higher costs for consumers. This might temporarily boost domestic production but could also lead to inflation, which might reduce the demand for gold as a hedge against inflation.
2. **Deregulation and Tax Cuts**: Trump's pro-business policies and focus on deregulation could lead to increased exploitation of American soil, benefiting sectors like fossil fuels. This might divert investment away from gold and towards sectors favored by Trump's policies.
3. **Strong Dollar**: Trump's policies, including tax cuts and tariffs, could strengthen the US dollar. A strong dollar makes gold more expensive for foreign holders and could reduce demand for gold as investors shift to other assets.
4. **Investor Sentiment**: Trump's policies are expected to lead to a more business-friendly environment with potential for increased economic growth. This optimism could drive investors towards stocks and other assets over gold, leading to a decrease in demand for gold.
5. **Historical Trends**: Historically, gold prices have risen during periods of economic uncertainty. With Trump's policies potentially increasing economic certainty, there might be less demand for gold as a safe-haven asset.

In conclusion, while there are potential short-term fluctuations due to market reactions and speculation, the long-term impact of Trump's policies on gold prices will depend on how they influence the overall economic environment and investor sentiment.