President Trump’s economic policies are contributing to a rise in gold prices by weakening confidence in the US dollar.
His large tax cuts are projected to add roughly $2.5 trillion to the federal deficit over the next decade. At the same time, he has pressured the Federal Reserve to reduce interest rates and suggested ideas such as restructuring debt held by foreign creditors. These moves have increased doubts about the long-term fiscal outlook.
Even though some policies might normally support the dollar—such as higher tariffs and comparatively attractive interest rates—the dollar has nevertheless declined about 10% this year while gold has climbed roughly 30% to near $3,400 an ounce. That divergence underscores growing concern among international investors about the United States’ capacity to manage its large and rising debt load, prompting a shift toward gold as a safer store of value.