Trump's Policies: A New Era for Global Energy and Precious Metals

A report by Angel One Wealth highlights the potential global economic effects of Donald Trump's presidential win. Focused on energy independence, Trump's policies could lead to lower crude oil prices and impact gold's market strength due to increased U.S. fiscal deficit and rising national debt concerns.

A recent report by Angel One Wealth suggests that Donald Trump's victory in the U.S. presidential election could significantly alter the global energy landscape due to his anticipated policies. Trump, a known advocate for domestic energy independence, aims to increase U.S. oil and natural gas production, a strategy expected to exert downward pressure on global crude oil prices.

The report predicts a possible correction in crude prices as Trump is likely to boost domestic production, thereby reducing reliance on foreign oil. This move could shift global supply and pricing dynamics. "Donald Trump is likely to keep the crude prices under tight control," the report states, referencing his continuous push for increased domestic energy output.

Additionally, Trump's preference for a non-interventionist foreign policy could contribute to stabilizing oil prices by allowing conflicts to deescalate swiftly. However, fresh sanctions on Iran under Trump's administration could introduce volatility by disrupting oil supplies from the region. Despite these factors, Brent Crude prices rose by 0.65 percent, reaching $75.41 per barrel at the time of this report.

On the financial front, Trump's expansionary policies, which imply heightened government spending, might expand the U.S. fiscal deficit and national debt, potentially influencing gold prices positively. As debt levels rise and inflationary pressures loom, investors might be driven towards gold, already seeing substantial demand in China. Despite some skepticism due to mitigating volatility in equities, a stronger dollar, and potential risk-on equity rallies, gold's strong fundamentals make it an appealing asset.

The report also supports a bullish outlook on silver, expected to thrive amid economic uncertainties and growing demand for safe-haven investments, although recent gold prices have seen a slight decline to Rs 78,710 per 10gm.

(With inputs from agencies.)