US President Donald Trump is known for his harsh statements that have a significant impact on financial markets, including the gold market. It has long been obvious to many experts and analysts that the modern financial system exists only because of the availability of cheap money. Without them, collapse would have come long ago.

The price of gold is very sensitive to statistics on the US economy. For example, last week the value of precious metals received support from reports of a weakening global economy. Precious metals showed slight growth after the data on the purchasing managers index in the US manufacturing sector were published, which unexpectedly showed a significant reduction.

Investors around the world are still focusing on the trade conflict between the United States and China. It would seem that its completion could take place in October, when a preliminary agreement is expected to be signed during a meeting of representatives of Beijing and Washington. But unexpectedly, Donald Trump announced the possible exclusion of Chinese companies from the US stock market.

However, the Democrats' impeachment procedure against Trump indicates that the trade war with China will not end as quickly as many expect. The President of the United States continues to pursue its “America First” policy in anticipation of the upcoming new presidential election in 2020. In his opinion, he has already achieved some success in this direction. According to experts, Trump will continue to demonstrate his power and put pressure on partners in order to relieve pressure at a strategically appropriate moment.

Trump demonstrates his arrogance not only in relation to the Chinese partners, but also actively criticizes the policy of the US Federal Reserve. He urgently needs a growing stock market, he needs economic growth, and best of all, if the dollar depreciates against other currencies. To do this, he requires the Federal Reserve to reduce interest rates to almost zero. A weak dollar will allow US producers to compete in other countries with the global market.

The Fed's soft monetary policy and the weak dollar will act as supporting factors for the price of gold. Without cheap money, financial markets can no longer function. The purchasing power of paper money is gradually declining, creating the illusion of perpetual growth. Against this background, the price of gold shows an increase, as the precious metal has an inverse correlation to paper currencies. The short-term decline in the value of yellow precious metals gives investors a unique opportunity to increase their investment in gold.