Bi-den to fading ties with India

Bi-den to fading ties with India

  • Reading time:3 mins read

By Hardik Goel

Over the past 20 years, every US President – Bill Clinton, George W Bush, Barack Obama and Donald Trump – has been at loggerheads over many issues, but if there is one common ground they all agree on: strong ties with India.

That means a culture of mutual support for better relations with India, and every US President has made it better than what he inherited from his predecessor twenty years ago.

H-1B Visa Program

This was of great concern to the Indians under Trump’s administration. However, Democrats appear to be more open to foreigners and Biden has repeatedly stated during his election campaign that his administration will change the H-1B visa system by removing the green card restrictions used for Indians. It means Biden could reverse Trump’s policy banning Indian migration to the US. But with Trump’s administration tightening the rules, it will not be easy for Biden to do so.

US-China Relations and India-China Relations

Biden is yet to clarify his stance on the India-China border issue, while some of his advisers want a new president to take the anti-China approach like Trump but many believe it is too difficult for Biden to disband the US and Chinese economies.

Human rights

Experts maintain that human rights issues will remain one of the priorities of Biden’s administration. This is not good news for Pakistan as it is known for human rights abuses, especially in Sindh, Balochistan and PoK. Biden’s administration is expected to take action against Pakistan for failing to protect the human rights of its citizens.

Biden’s effect on Gold

Just after Joe Biden was announced as the new president, gold prices globally edged higher in early Asian trade, followed up by a weaker dollar and hopes of more stimulus measures under the newly elected president. However, after a day, the Covid situation around the globe took a tool on investors’ sentiment leading to a fall in gold prices globally.

Future of yellow metal

While, it is important to consider the link between gold prices and factors such as US presidential elections, however, gold prices are strongly influenced by other factors, particularly the US dollar and the bond yield.

Financial markets often prefer certainty, so this situation could support the price of gold at least in the medium term.

Usually, the US dollar strengthens immediately after a change in presidency, regardless of which political party wins, showing a strong dollar if Biden wins the election. The situation came as Democrats took over both the Senate and the House after Biden’s victory.

If Trump were to take over, further certainty would actually be wrong with gold, at least in the short term, until investors re-evaluate the global economy under the new administration.

It is not who wins the election, but rather the general goals of the winning party, which affects the yellow metal, however, financial problems and epidemics are most affected when it comes to prices.

Biden’s victory will free up international trade, in contrast with Trump, who has raised more U.S. imports, and sparked a trade war with China, which has pushed up the price of gold.

In addition, free trade will reduce the tensions that lead to the rise in the price of the dollar and the decline in the price of gold, while pockets of financial incentives have a positive effect on gold.