Trump’s economic policies are driving gold prices higher by undermining confidence in the US dollar.
His massive tax cuts are adding $2.5 trillion to the deficit over the next decade, while he pressures the Fed to cut rates and floats ideas about restructuring foreign-held US debt.
Despite factors that should strengthen the dollar—like high tariffs and favorable interest rates—it has fallen 10% this year while gold has surged 30% to $3,400/oz. This trend reflects growing foreign investor concerns about America’s ability to manage its massive debt burden.