Gold has long been seen as a barometer of economic stability and geopolitical tension, with its value often fluctuating in response to major political decisions and events.
With Donald Trump elected in November 2024, economists are predicting that gold prices could surge to new highs, with gold bullion trading as high as $3,150 an ounce by 2025.
With this in mind, the experts at The Gold Bullion Company have delved into the history books and looked at how the price of gold changed among key political leaders taking power in their respective years.
But which political leaders shifted the price of gold the most?
Donald Trump: During the 2016 election race between Donald Trump and Hilary Clinton, gold saw a notable rise in the run up to November 8th. It was reported that gold prices gained about $50, peaking at just above $1,300 per ounce on November 4th.
This period of time was characterised by a lot of anxiety from those keeping an eye on the market, many feared gold, a previously safe asset, could be rocked by the prospect of political instability.
After Trump secured a surprise victory, gold prices tumbled to $1,128 by mid-December. Stock markets climbed, reducing gold’s attraction as a safe investment. By January 2017, gold had started to recover, pushing prices back over $1,200.
Joe Biden: Despite their clear divide in political opinions, Joe Biden’s entry into the White House brought a similar pattern of instability. In the week leading up to the November 3 vote, gold was trading at around $1,900. Despite a small spike following Biden’s win, gold prices fell once more when Trump challenged Biden’s victory, demanding several recounts. However, it later regained strength upon finally being declared victor on January 6th, 2021.
George W. Bush: Bush’s presidency was a secure time for gold investment. Following the September 11th attacks in 2001 and the subsequent war on terror, many believed the country would face a period of geopolitical instability, which helped push up the prices. It’s believed that gold could’ve seen an unbreakable run but the 2008 financial crisis caused a dip in this once stable investment.
Xi Jinping: Xi Jinping’s leadership has been a revolutionary time for China and its relationship with gold. Since his rise to power in 2013, China has increased its gold reserves to the extent that it drove up both its price and its global demand. China’s reasons for this investment are believed to be to reserve funds and reduce its dependence on the US dollar, which is thought to be the most important currency to hold in reserve.
China’s part in BRICS is also noteworthy, as the bloc, which includes countries like Brazil, Russia, South Africa and India, have reportedly considered creating a unique gold-back currency. Further reducing global reliance on the US dollar. As of 2024, China is now the world leader in gold production and also the second biggest buyer of the precious metal.
Vladimir Putin: As of 2024, there’s thought to be around 16,000 sanctions placed against Russia. These restrictions come from its 2014 invasion of Crimea alongside the invasion of Ukraine in 2022. Both of these geopolitical events have impacted gold prices.
The sanctions imposed on Russia following its 2014 annexation of Crimea and, more recently, its 2022 invasion of Ukraine, have impacted gold prices. With Russian wealth moving out of traditional financial systems and increased global geopolitical tension, gold prices rose as investors sought stability.
Similar to China, Russia’s involvement in BRICS could help push forward a new gold-backed currency, giving them further power in this field.
Liz Truss: In September 2022, Liz Truss just published a now controversial mini-budget that courted widespread, global media attention and rattled markets which led to a rise in gold prices within the UK. Like with many events in history, the sharp drop of the currency (in this case, the pound) led people to look towards safer investments which historically, gold has proven to be.
