Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
Gold prices hit new highs again! How should we allocate various assets?
Views 30K Contents 60

Gold price performance under various US administrations.

Here's the overview:

▶ George H.W. Bush (1989-1993), gold prices fell by 19%, reflecting post-Cold War optimism and economic expansion.

▶ Bill Clinton's era (1993-2001) continued this trend with a further 20% drop, as markets embraced globalisation and stock market booms.

▶ The major inflection point came with George W. Bush (2001-2009), where gold prices soared by 215%, driven by geopolitical tensions, 9/11, and the 2008 GFC.

▶ Barack Obama (2009-2017) saw a continued rise (+44%) as central banks introduced massive stimulus post-GFC.

▶ Donald Trump (2017-2021) oversaw a 53% increase, with trade wars, COVID-19, and massive fiscal expansion fueling uncertainty and demand for safe-haven assets.

▶ Joe Biden (2021-present), gold prices have continued their upward trend (+37%) as inflationary pressures, global unrest, and monetary policy shifts keep investors flocking to gold.

--
We can see that though gold is broadly negatively correlated with stocks and has a variable performance during periods of high inflation, it has no singular driver.

However, one factor in particular tends to be a dependable catalyst for the gold price and that's systemic risk, either economic or geopolitical, and performance is amplified where both of these apply as seen during Bush II.

Regardless of who takes the reigns in November, we'll likely remain in a high systemic risk period for some time to come.
Gold price performance under various US administrations.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
5
1
+0
Translate
Report
47K Views
Comment
Sign in to post a comment
    avatar
    Moo Contributor
    Posting Weekly content- Currently a part-time finance student Swing Trades + Long-term investing
    2478Followers
    35Following
    5821Visitors
    Follow