After Attack on Trump: Gold Reaches New All-Time High

On July 13, 2024, an assassination attempt was made on Donald Trump during a campaign event in Butler, Pennsylvania. The former president was slightly injured in the ear when a gunman fired eight shots at him from a distance of around 120 meters. This incident led to an immediate and extensive response by the Secret Service, which neutralized the assailant. One bystander was killed and two others were seriously injured.

The market's reaction to this incident was remarkably stable. Despite the severity of the event and the initial uncertainty it triggered, US equity markets did not show any significant falls. In fact, futures rebounded slightly in the days following the incident, suggesting that investors quickly processed the incident into their valuations and did not expect any long-term negative impact on the markets.

However, the price of gold, which often serves as an indicator of uncertainty and a safe haven in times of geopolitical or economic unrest, reached new highs in the days that followed. The rise reflects a typical market reaction to uncertainty, with investors tending to flee to supposedly safer assets such as gold. This move was supported by general market stability and swift action by security forces, which helped to boost investor confidence and potentially avoid major turmoil.

Overall, however, the market's reaction to the attack shows that, despite initial shocks and the potential severity of such events, confidence in the stability of the US political and economic systems remains strong and that the mechanisms for dealing with such crises work effectively.

Between July 13, 2024 and July 24, 2024, the gold market experienced a remarkable development, with the price per ounce finally reaching almost USD 2,484.00 this afternoon. The development of the gold price over the last ten days therefore shows a clear market reaction to this specific event:

• On July 13, 2024 – the day Donald Trump was assassinated – the price of gold was around USD 2,411.67 per ounce when the market closed.
• By July 17, 2024, the price of gold had risen to a high of USD 2,480.30 per ounce. This rise reflects a typical market movement in which gold is sought as a safe haven in times of political uncertainty and crises.
• On July 18, 2024, the price of gold experienced a brief drop to USD 2,429.55 per ounce – followed by further fluctuations in the days that followed.
• On the afternoon of July 24, 2024, the price of gold finally reached USD 2,484.00 per ounce, a new record high.

The direct impact of the assassination of Donald Trump has had an immediate and clear reaction on the price of gold. The rise and subsequent fluctuations in the price underline the importance of gold as a safe haven in times of geopolitical uncertainty.

The driving forces behind this price momentum were manifold. Firstly, the immediate shock of the attack led to increased uncertainty on the global markets, often resulting in increased demand for safe-haven assets such as gold. Geopolitical tensions and the resulting speculation continued to contribute to volatility and price rises. In the following week, markets continued to react sensitively to developments and news regarding Trump's condition and political stability in the US, leading to further price fluctuations. The rise in the price of gold typically reflects a flight to safety triggered by political and economic uncertainties. In summary, the significant rise in the price of gold in this short period was a direct result of the increased demand for safe investments, but was also driven by political uncertainties and the associated market reactions.

The assassination attempt on Donald Trump has had an immediate impact on the gold market. In the days following the incident, investors increasingly sought protection in gold, which was reflected in a sustained rise in the price of gold. This development reflects market behavior and investor reactions as to why gold acts as a safe haven in times of crisis:

• Stability and security: In times of political uncertainty, investors turn to tried and tested security investments. Gold is particularly popular due to its historical role as a safe haven.
• Increased demand: Demand for gold rose sharply immediately after the attack as investors looked for stable investment opportunities.

The following strategic considerations arise for investors in such situations:

• Risk management: Investors use gold to spread risk. In an uncertain political climate, gold offers a hedge against volatility in other market segments.
• Long-term prospects: Despite short-term price fluctuations, the long-term outlook for gold remains positive, which is reinforced by its status as a hedge against inflation and currency devaluations.

The reaction of the gold market to the Trump assassination illustrates how quickly gold can rise in favor with investors when global events cause uncertainty. This emphasizes the importance of gold for investment strategies that focus on security and stability.

The recent rise in the price of gold - triggered by the assassination of Donald Trump - highlights the sensitivity of the gold markets to global events. However, there are other significant influencing factors that could play an essential role in the future:

• Central bank policy: Central banks such as those of China, India and Russia have significantly increased their gold reserves. These purchases are partly a reaction to the uncertainties surrounding the US dollar and serve to diversify currency reserves. In Russia, it has been observed that despite international sanctions and economic isolation, gold reserves are being used strategically to support the stability of the rouble and reduce dependence on the dollar.
• Geopolitical tensions: The ongoing crisis in Ukraine and related European and global tensions have generated continued uncertainty, which is driving investors to invest in safe-haven assets such as gold. Relations between China and Taiwan remain a critical issue that may affect global markets. Any increase in tensions could lead to increased demand for gold as a safe haven. In the Middle East, conflicts and political instability are also increasing the attractiveness of gold as an investment.
• Economic indicators: Global inflation trends and uncertainties remain key drivers of gold demand. High or rising inflation rates may continue to support the gold price as investors look for assets that can serve as a hedge against inflation. Technological and industrial demand - especially from sectors such as electronics - where gold is used in components and compounds, can also influence the demand and therefore the price of gold.

These factors illustrate that the gold market reacts very sensitively to a variety of political and economic developments. Investors should therefore consider a wide range of information and not just pay attention to short-term events in order to make informed decisions about their investments in gold.