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Rutuja Nigam made post

Why it is that gold prices tend to go down when economies are growing

Answer
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Priyanka N answered.
2 years ago


Economic growth in key economies is another key factor that impacts the price of gold. Let us go back to the situation in November 2016 when Donald Trump got a mandate to become the President of the US. Trump’s economic program was predicated on massive tax cuts and a big push to infrastructure. Both these moves had the potential to give a big boost to economic growth. When economic growth returns to an economy, investors would typically prefer to participate in this growth through equities rather than park their monies in gold. That explains why gold prices fell sharply after Trump became the President of the US. That also explains why gold once again rallied when it become evident that Trump would face major challenges in implementing his economic program.