Gold Prices Fall to Three-Week Low After Trump’s Victory

Gold prices fell to a three-week low on Nov. 6, 2024, as investors shifted focus to the US dollar following the election of Republican candidate Donald Trump as US President. Analysts say Trump’s victory removes a layer of uncertainty among investors. 

Spot gold dropped 2.8%, trading at US$2,667.19/oz at 2:07 p.m. ET (1907 GMT), after reaching a low of US$2,652.19 earlier in the session. The decline marks the metal’s largest single-day loss in five months. US gold futures settled 2.7% lower, closing at US$2,676.3/oz.

According to Reuters, market participants expect the Federal Reserve's (Fed) interest-rate decision on Nov. 7, 2024, looking for signals regarding the bank's monetary policy. The Fed's previous actions have been a contributing factor to gold’s rally to record highs in early 2024.

Rhona O’Connell, Analyst, StoneX, attributed the drop in gold prices to a combination of factors, including Trump’s victory, which removed some market uncertainty. Additionally, the strengthening of the US dollar, a typical response in the wake of Trump’s election, further pressured gold prices.

Trump's victory was confirmed after he secured 295 electoral votes and 50.9% of the popular vote. At the time of writing, the Republican Party holds 52 seats in the Senate, maintaining a majority. In the House of Representatives, Republicans have 205 seats, while Democrats hold 190, with final control of the House yet to be determined.