Following Donald Trump’s recent victory in the U.S. presidential election, gold prices have experienced a significant decline, reaching a multi-week low. This downturn is primarily attributed to a sharp rally in the U.S. Dollar, as investors anticipate the new administration’s economic policies.
The strengthening dollar exerts downward pressure on gold, making it more expensive for holders of other currencies and thereby reducing demand. Additionally, expectations of increased fiscal spending and potential interest rate hikes under the Trump administration have further diminished gold’s appeal as a safe-haven asset.
Market participants are closely monitoring upcoming economic indicators and policy announcements to assess the future trajectory of gold prices. The interplay between U.S. fiscal policies and global economic performance will be pivotal in determining the precious metal’s outlook.
