The US presidential election results have the potential to greatly impact the global energy outlook, with a focus on Donald Trump’s policies that emphasize domestic energy independence and increased production of oil and natural gas in the US. This shift is expected to lead to lower crude oil prices as Trump aims to keep prices in check by ramping up domestic production. This approach could reduce US dependency on foreign oil sources and affect global supply and pricing dynamics. The report by Angel One Wealth highlights Trump’s likely influence on crude prices and discusses the potential impact of his non-interventionist approach on stabilizing oil prices by deescalating conflicts more quickly.
Despite the anticipated positive effects on oil prices, potential volatility could arise if Trump decides to impose new sanctions on Iran, which could disrupt oil supplies from the region. The report suggests that Trump’s influence on the energy sector will play a significant role in determining crude prices, but other external factors will also have an impact. At the time of writing the report, Brent Crude prices had surged by 0.65% to $75.41 per barrel, indicating that market conditions are constantly evolving in response to political developments and global events.
In addition to the energy sector, Trump’s expansionary policies are expected to result in higher government spending, which could lead to increases in the US fiscal deficit and national debt. This rise in debt levels is likely to have a positive impact on gold prices, as investors seek safe-haven assets in response to heightened debt levels and potential inflationary pressures. The report notes that China’s high demand for gold further supports the value of the precious metal, presenting a strong case for investing in gold as a hedge against economic uncertainty.
While there are some arguments against gold due to reduced volatility in equity markets, a stronger dollar, and the possibility of a “risk-on” rally in equities, the report maintains that gold’s fundamentals are strong, making it an attractive asset in the current environment. The report also expresses a positive outlook on silver, which, like gold, is expected to benefit from economic uncertainty and increased demand for safe-haven investments. However, the price of gold fluctuated in the market, with a decline to Rs 78,710 per 10gm after closing at Rs 80,500, indicating the dynamic nature of the precious metals market in response to changing global conditions.
