Trump’s policies increase investors’ concernsBefore Trump’s inauguration, many economists warned that his policies could push inflation higher and harm global economic growth. But at a global event in Davos last week, he confused everyone, as he told world leaders and corporate executives at the World Economic Forum in Davos – via video – that he wanted to see lower global interest rates. This increased everyone’s fears of a clash between Trump and Jerome Powell, the US Federal Reserve Governor, in the coming months, as the latter wanted to stop the pace of US interest rate cuts, fearing Trump’s policies, which naturally raise inflation rates, which ultimately means tightening the US Federal Reserve’s policies. Trading Tips:Gold has a strong future globally, so be sure to trade gold without risk while continuously monitoring the factors affecting this market. The Decline in the US Dollar Supports the Gold MarketAccording to Forex trading, the US Dollar Index (DXY), which measures the performance of the US currency against a basket of major currencies, fell below the 107.40 level in the last trading session, extending its recent decline to its lowest level in more than a month. Also, its losses came as financial markets reconsidered the impact of the inflationary policies previously pledged by US President Trump.US President reiterated his plans to expand energy production and liberalize business practices in his latest remarks at the World Economic Forum. Furthermore, refrained from confirming tariffs against China, limiting the risk of inflation for major commodities imported by the United States.Meanwhile, economic data showed that US jobless claims rose to their highest level in more than three years in January, suggesting that the labour market is being affected by tighter monetary policy, despite remaining at historically strong levels.Commenting on the outlook for the US dollar, Morgan Stanley currency experts warned that traders are increasingly looking for the right moment to sell the US dollar. Meanwhile, the company’s forecast for the dollar is one of the most bearish among analysts and experts surveyed by Bloomberg. Also, bullish bets on the US dollar and the value of the currency itself have increased in the months since Trump won the presidential election in November.According to Forex trading, the US dollar index has risen more than 3% since November 5, 2024, while derivatives traders held the equivalent of about $33.7 billion in long-term positions in dollars, according to data from the Commodity Futures Trading Commission as of January 21 – which is close to the highest level since 2019.More By This Author:USD/JPY Analysis: Bulls Ready To Take Off EUR/USD Analysis: Temporary Halt In LossesUSD/JPY Analysis: Psychological Resistance Level Of 160.00 Remains In Sight