Trump Trade Boom Means Gold Is on Sale—Don’t Miss This Buying Opportunity

EDITOR'S NOTES

With a fresh wave of Trump-driven euphoria sweeping the markets, gold and silver prices are taking a hit, but there’s more beneath the surface. While “animal spirits” have been unleashed across stocks and crypto, one analyst predicts gold could bottom out at $2,500 before the dust settles. Learn why the sudden surge in high-risk assets may lead to big buying opportunities in precious metals—and why it might pay to hold tight while the markets cycle through this phase.

Frank Balm Nov 15, 24

As Trump takes center stage in the latest market frenzy, stocks, crypto, and the dollar are flying high. But while high-flying tech and “Trump trades” like Bitcoin and the US dollar surge, the precious metals are on the back burner, at least for now. It’s the same sort of market high we saw back in 2016 when Trump first took office—a burst of speculative excitement that has the big players moving their chips into high-risk assets. But don’t be fooled into thinking this rally spells trouble for gold and silver long-term. In fact, this is setting up what could be a critical buying opportunity.

Trump’s Return: High-Risk Market Euphoria Kicks In

According to Nicky Shiels, Head of Research at MKS PAMP, the “animal spirits” of the market are running wild right now, with the S&P hitting record levels, Bitcoin eyeing the $100,000 mark, and the dollar soaring. With fears of major global crises, like a third world war, momentarily fading, big investors are plowing their money into high-yield assets that promise quick gains. Stocks, tech, and crypto are all part of this “Trump trade,” and the markets are eating it up.

Shiels sees similarities to 2016, when Trump's policies sparked a surge in risky assets like Bitcoin and tech stocks. This time, the market is reacting even faster—U.S. stocks jumped nearly 5% in a single week, a pace that took a month back in 2016.

What This Means for Gold (Hint: It’s Not All Bad)

Right now, gold and silver are going through what you could call a “cooling-off” period. Gold is down about 5% week-over-week, while silver and platinum are following a similar trajectory. But here’s the thing: this isn't unusual. Back in 2016, gold dropped 12% after Trump’s win, before bouncing back. In today’s market, Shiels predicts a similar pattern, with a potential gold floor around $2,420—maybe even as low as $2,500 before things pick up again. Silver could also see a temporary dip to around $28.50.

Now, if you’re someone who’s been holding gold and silver, this drop might look a bit unsettling, but there’s no need to panic. Shiels notes that the shift in gold’s price action isn’t a sign of weakness but rather a rebalancing as high-risk assets get all the attention for the time being.

Short-Term Headwinds and Long-Term Potential

Gold has faced some “new tactical headwinds” lately. The U.S. dollar’s rise, ETFs turning to net sellers, and the fading election-related “fear premium” have all played a part in pressuring gold lower. The hawkish stance from the Federal Reserve and lackluster Chinese stimulus haven’t helped either. With Trump in the picture, there’s even less urgency for traditional safe havens, as the market bets on a rosy, growth-driven economy.

But let’s not lose sight of the bigger picture. Shiels argues that nothing about gold’s structural value has changed—this is a momentary pause, not a breakdown. The truth is, the long-term forces supporting precious metals haven’t disappeared. Inflation may be subdued for now, but it’s still lurking in the shadows, waiting for its chance to break out. And when it does, gold is bound to rally.

Prepare for the Next Bull Run

In the short term, we might see more bumps along the way. The markets could see some bear traps (where prices dip only to bounce back quickly), so it won’t be a “straight line down” for gold. But Shiels points out that longer-term, the case for gold remains strong. While we might see gold dip to $2,500 in this cycle, she believes the next big moves will likely be upwards.

As the U.S. dollar flexes its muscle under Trump’s policies, Europe could feel the squeeze. If U.S. tariffs rise, Europe could be left in a tight spot, with weaker growth prospects and a shaky political landscape. All this would make gold more attractive as a hedge, not just in the U.S. but globally. Shiels even sees the euro-to-gold rate as a critical cross to watch, with her sights set on EUR2400.

Bottom Line: Hang Tight, and Don’t Lose Faith in Gold

So, what’s the takeaway here? With the market focused on stocks and crypto, gold and silver are seeing a temporary slump. But don’t let this Trump-fueled euphoria fool you into thinking gold’s run is over. Markets are always in flux, and the smart money knows that big gains don’t come without some turbulence. We’re in the middle of a repricing phase, and while it may feel uncomfortable, this is what creates real opportunities.

If you’re holding gold, now is not the time to sell. This is the time to prepare for what’s coming next. Keep an eye on those dips—they could be your chance to build up your gold reserves at a discount before the next wave of inflation hits.

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