From HSBC:
Trump may have a different, more bullish gold impact to previous Republican presidents
During the 2012 presidential election, as we highlighted in US Elections and Gold: Caveat elector, 29 October 2012, we found that gold prices tend to appreciate more rapidly under Democratic presidents. Although Donald Trump is the Republican presidential nominee, we view his policies as considerably more gold-bullish than Mrs Clinton’s. Much of our rationale rests on Mr Trump’s trade platform and protectionist policies. In addition to his avowed protectionist stance, Mr. Trump has also presented a firmly populist platform. In Gold: Protection against protectionism, 14 October 2016, we assessed Mr Trump’s trade policies as typically good for gold. As a perceived “safehaven” and flight-to-quality asset, the demand for gold is often stimulated by the same factors that fan protectionist and populist sentiment. The negative impact on global trade that may result from a Trump win would also strongly promote gold demand, we believe. If trade frictions trigger counter measures by other nations and encourage competitive currency devaluation, gold is further likely to be a beneficiary.
