There has been wide spread speculation as to how market may react at Trump’s ascendancy ? A question which has been haunting the investors and traders alike !
First his policies have not been clearly spelt out and being a political outsider it is difficult to relate him with previous economic leanings than might act as a precursor to his winning Presidential elections in November. If he wins the elections one thing that is assured is a degree of uncertainty and a period of policy indecision among bureaucrats and economists. In a televised presidential debate held recently Trump although a counselor of low interest rates, criticized Fed Chair Janet Yellen for keeping rates low due to political compulsions and that it will create a problem for the stock market when there is a delayed rise.There will be political uncertainties because of his continuous racist slur during his campaigning. This type of environment will create a demand for gold and USD. If we take Gold than price hike is a given because all the above conditions provide a fertile ground for a price rise in the yellow metal as it is considered a good bet and a safe heaven investment. US Dollar’s rise can have a negative impact on base as it will make commodities costlier for holders of the material in other currencies.
Another point of view is he has been a successful business tycoon and might make industrially favorable policies. He has been advocating higher spending for infrastructure and that might increase the demand for base metals. Either way what we are certain is the degree of uncertainty his win will impose on the world and should herald a new chapter for the commodity and financial markets worldwide !!