Gold Will Flourish Under Trump Next Year

(December 5, 2024 - Rowan Dunne)

Increased tariffs, decreased regulations and other changes will keep the commodity at a high dollar, they expect

Donald Trump’s upcoming term as United States President will be beneficial for the gold market, analysts at the Canadian Imperial Bank of Commerce (CIBC) (TSE: CM) have predicted.

They made this assessment in their 2025 outlook report released on Nov. 25. The analysts expect that gold will ascend by about US$150 per ounce next year and hover around US$2,800 per ounce with the latter half of 2025 being most beneficial for the commodity.

“We believe Trump’s implementation of tariffs could lead to retaliatory tariffs on U.S. exports, driving inflationary pressure and supporting gold prices,” they said, “which have historically risen alongside inflation.”

Rising tariffs, decreasing interest rates, trade battles and relaxed regulations brought about by the Trump Administration will support higher precious metals prices in the near term, the analysts think. In the longer term, they estimate that gold’s value will begin to steadily drop back down in 2027.

“On the geopolitical uncertainty front, we believe Trump’s unpredictable style will influence his foreign policy plan, which could provide tailwinds for the gold price throughout his term.”