Investment Strategies
What is driving gold prices to record highs and contributing to their seven-week winning streak?
Gold prices have reached record highs and maintained gains for seven consecutive weeks due to escalating fears of a global trade war. This surge is primarily driven by the Trump administration's aggressive tariff policies, which impose duties on any countries that charge tariffs on US imports, reflecting a zero-sum approach to international trade. The geopolitical tensions and uncertainty surrounding these trade policies have prompted investors to seek safe-haven assets like gold. As trade war fears intensify, market participants are turning to precious metals as a hedge against potential economic instability and currency fluctuations that typically accompany such international disputes.
Watch clip answer (00:15m)
WION
01:52 - 02:07
What is President Trump's executive order regarding a U.S. Sovereign Wealth Fund and how does it work?
President Trump has signed an executive order to establish a U.S. Sovereign Wealth Fund, directing the Treasury and Commerce Departments to develop a comprehensive plan within 90 days. Sovereign wealth funds are investment vehicles created from a country's budget surplus reserves, typically used to invest in various sectors including stocks, bonds, infrastructure, and technology. This initiative represents part of Trump's broader economic strategy to leverage state resources for investment purposes, though specific details about funding sources and investment priorities remain to be determined in the upcoming planning phase.
Watch clip answer (00:21m)
Al Jazeera English
22:48 - 23:10