In the past four terms of the U.S. presidency, gold has risen significantly. Citigroup: Aiming for $3000 this year!
According to Citigroup's analysis, the price of gold has risen by over 50% during the terms of Presidents Trump and Biden respectively. Currently, the price of gold has reached $2578.30 per ounce, with expectations to surpass $3000 this year. The analysis suggests that the surge in gold price is mainly influenced by geopolitical tensions, complexities in the financial landscape, and increased central bank demand. Historical data shows that the price of gold has significantly increased during the term of each U.S. president, especially during periods of uncertainty and economic instability, where gold is seen as a safe-haven asset
In another U.S. election year, as a new presidential term is about to begin, the price of gold has once again become the focus of global investors. In August, the price of gold broke through $2,500 per ounce for the first time, setting a new historical high. Citigroup has indicated that the price of gold may have the potential to surpass the $3,000 mark this year.
As of now, the price of gold has surged to $2,578.30 per ounce, bringing the target of $3,000 even closer.
Analysis suggests that the surge in gold prices this year is mainly due to the increasingly complex geopolitical and financial landscape, as well as an increase in central bank demand. A survey conducted by the World Gold Council in April this year found that 29% of central banks surveyed plan to increase their gold reserves in the next 12 months.
Data from Kayla Zhu of Visual Capitalist shows that since 1989, it seems that the price of gold has "struggled" to avoid soaring during each presidential term.
Historically, gold has always been seen as a safe haven asset during times of geopolitical uncertainty and economic instability, with significant price changes occurring during each U.S. president's term.
The chart shows that the price of gold rose by over 50% during President Trump's term, followed by a 37% increase during President Biden's term. However, compared to President Bush's term, it can only be considered a "small feat", as during his term, gold saw its largest increase since 1989, reaching a high of 215%.
Analysis points out that if the global financial crisis of 2008 had not occurred, gold could have experienced a stronger bull market during President Bush's term from 2001 to 2009. However, due to market concerns about deflation at the time and a shift to the U.S. dollar as a safe haven, the price of gold fell 30% from its peak to its trough that year.
It is worth noting that past events such as 9/11, the COVID-19 pandemic, and the Russia-Ukraine conflict have all driven up the price of gold, as investors tend to seek stable safe-haven assets during turbulent times.
With this year's U.S. election approaching, analysts at Citigroup predict that regardless of whether Trump or Harris is elected president, the price of gold will surpass $3,000 by the end of this year