Analyzing the movement of natural gas futures, prices have struggled to stay above the $3.274 support level since Sept. 27, 2024. This tug-of-war reflects market uncertainty as investors brace for potential shifts in energy policy under President-Elect Donald Trump, set to take office on Jan. 20, 2025.
Long-term investors are primarily focused on one question: Will Trump maintain his previous support for fossil fuels or pivot toward a cleaner energy agenda? During his presidency, Joe Biden prioritized clean energy, injecting billions of dollars into the sector to curb emissions and address climate change. In contrast, Trump has consistently dismissed climate concerns, favoring traditional energy sources—a stance that could reshape investment strategies in energy and precious metals.
These policy uncertainties are already creating nervousness among energy investors. The solar and wind sectors, buoyed by Biden-era policies, may face a slowdown as Trump’s administration takes shape. Natural gas futures, in particular, could see heightened volatility as traders anticipate policy shifts.
Another factor at play is Trump’s stance on Federal Reserve policy. If he discourages further rate cuts, as many expect, this could dampen fresh investment in both the energy and metals sectors, keeping precious metal prices under pressure.
Additionally, Trump’s favorable view of cryptocurrencies may redirect capital from gold to Bitcoin, increasing crypto market volatility in 2025. This potential shift in money flow could explain the current softening in gold futures as investors begin reallocating their portfolios.
With so much still unclear about Trump’s upcoming policies, investors in energy, metals, and cryptocurrencies should prepare for significant changes.
Disclaimer: This analysis is based on observations and does not constitute investment advice. Readers are encouraged to make investment decisions in gold or natural gas at their own discretion.