Gold and Trump
If Trump has a plan to raise the value of the dollar again,
he’ll at least be able to control the price of gold for a while, or at least slow down its rise.
The dollar chart indicates that at the beginning of 2026, it will start to rise again.
The trump administration is on record saying they want a weaker dollar and that they want a substantially lower fed funds rate (weaker dollar)
Correct, but this time his goal isn’t just to weaken the dollar it’s to lower interest rates to reduce the cost of short term debt.
By cutting yields on 5 and 10 year bonds, he can refinance short term debt (6 months, 1 year, 2 years) with cheaper, longer term money.
In other words, he’s shifting debt from now to later.
Lower rates structurally weaken the dollar. All signs point to a weaker dollar during the trump term.
