A report from Angel One Wealth suggests that Donald Trump’s potential victory in the U.S. presidential election could alter the global energy outlook, driven by his anticipated policies.
Trump, a strong advocate for domestic energy independence, has consistently pushed for increased production of oil and natural gas in the U.S. This policy could lead to downward pressure on global crude oil prices.
The report highlights that, under Trump’s leadership, crude oil prices may face a correction as he is expected to control prices by boosting domestic production. His focus on reducing U.S. dependence on foreign oil would likely affect global supply and pricing dynamics.
The report states, “Donald Trump is likely to keep crude prices under tight control, as he has consistently advocated for expanding domestic energy production.”
It also points out that Trump’s non-interventionist approach to foreign conflicts could help stabilize oil prices by potentially reducing geopolitical tensions more swiftly.
However, the report warns that volatility could emerge if Trump decides to impose new sanctions on Iran, which could disrupt oil supplies from the region.
In conclusion, while Trump’s influence is expected to contribute to lower crude oil prices, other external factors will also play a role in shaping the market.
As of the report’s publication, Brent Crude prices had risen by 0.65%, reaching $75.41 per barrel.
Beyond energy, Trump’s policies are expected to be expansionary, likely leading to higher government spending, a growing U.S. fiscal deficit, and increased national debt. This rise in debt could positively impact gold prices, as investors may turn to safe-haven assets in response to inflationary pressures.
Gold is already experiencing strong demand in China, further supporting its value. While some argue against gold due to reduced volatility in equities, a stronger dollar, and the potential for a “risk-on” rally in the stock market, the report maintains that gold’s fundamentals remain solid, making it an attractive investment in the current environment.
It adds, “A rise in U.S. debt is positive for gold, and this time is likely no different as inflation concerns persist. Additionally, gold is witnessing unprecedented demand in China, which further strengthens its value.”
The report also reaffirmed its optimistic outlook for silver, which, like gold, is expected to benefit from economic uncertainty and growing demand for safe-haven investments.
However, despite these favorable factors, gold prices did experience a decline on Thursday, dropping to ₹78,710 per 10 grams, compared to ₹80,500 the previous day.
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