India, Trump and Gold

The recent fall of gold prices after Donald Trump’s election has left many gold bugs and analysts puzzled. Gold prices were predicted to reach $1400/oz if Trump wins the US elections, but mysteriously, prices reversed that direction, hours and days after Trump’s victory.

Everyone has an opinion on why that happened and whatever analysis we read or hear, it is important to keep one important thing in mind, that the prices of gold and silver are being manipulated  and this is not a conspiracy theory. Deutsche Bank recently settled lawsuits over allegations it manipulated gold and silver prices, and the bank even announced its willingness to cooperate and expose other banks that are involved in this mega-manipulation business.

There is also another factor, besides manipulation, that posed downward pressure on gold prices . The recent demonetization policy launched by Indian Prime Minister Narendra Modi, has led the masses to rush to get their soon-to-be illegal currency, exchanged for new bills. This has caused chaos for the indian markets, at a critical time when the wedding season approaches, a season known for its role in driving gold prices higher. Add the 1% excise duty on imported gold and jewelry, recently imposed by India’s government, and we have the perfect storm of further downward trending in the gold/silver markets.

At leaf.ae, we believe this trend might continue in the short-term, until December or January, providing an excellent opportunity for those interested in getting more gold and silver bullion at lower prices. We also believe that this might be the last opportunity to purchase at such low prices. Given the fundamentals, European recession, slow-growth in China, fiscal challenges in US as well as bond and real estate bubbles ready to pop around the world, coupled with Trump’s aggressive forecasted policies, gold and silver prices should skyrocket during the first or second quarter of 2017 and for the next decade.

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