Zhang Peng | LightRocket | Getty Image
Uncertainty over U.S. President Donald Trump’s term in office will boost gold prices, an Australian asset manager says. In this photo taken on January 31 in the China, an inflatable rooster figure with a Donald Trump hairstyle and hand gestures, stands outside a gold shop to attract customers.
“Over the last couple months, everybody’s become obsessed with Trump, his actions, statements and of course his tweets. We think this is going to continue. It’s an up-and-down ride and these risks are going to be positive for gold going forward,” Chesler told CNBC’s “The Rundown“.
Other factors supporting gold’s role as an inflation hedge and safe haven including rising U.S. inflation expectations, Brexit, elections in several European countries and Trump’s proposed tax cuts which will mean there will be “debt coming for a long time”, he added.
Gold prices took a beating after Trump’s victory but have since rebounded 7 percent this year-to-date. Spot gold prices are slightly higher on Tuesday afternoon in Asia, trading around $1,228 an ounce.
