Gold Tumbles, Analysts See Support At $2,626
Gold trading alert: After Trump's election victory, the US dollar soared to nearly a five-month high, causing gold prices to plummet by more than 3%, hitting a three-week low, aiming for 2600?
On Thursday (November 7), in early Asian trading, spot gold fluctuated slightly higher, currently trading near $2662.35 per ounce. Gold prices plunged more than $80 on Wednesday to a three-week low, hitting a low of $2652.35 per ounce, closing at $2658.78 per ounce, a drop of about 3.1%, the largest single-day drop since June 7, as investors poured into the dollar after Republican Trump was elected as President of the usa, with US bond yields also rising sharply, and US stocks hitting record highs putting pressure on the safe-haven demand for gold. Trump's victory in the US presidential election triggered a sharp rebound in the dollar, reaching its highest point since July 3rd.
Trump sparks a rally in the US dollar! US stocks and bitcoin hit new highs, with the Dow rising 1500 points, small cap stocks surging, while US bonds and metals plummet.
Dow rises to the best level in two years, small cap index rises nearly 6%, banking stocks rise over 10%, oil, steel, and crypto stocks surge, European and American solar stocks all collapse, Trump media technology rises by almost 35% before closing up by about 6%, Tesla rises by nearly 15% to a two-year high, Qualcomm rises by 10% after the bell. Chinese concept stocks narrow their declines, NIO Inc and Zeekr drop over 5%. 10-year US Treasury yield rises the most by 20 basis points nearing 4.48%, reaching a four-month high along with a 1.7% rise breaking 105 in the USD index, Bitcoin rises by 9% nearing $0.076 million, offshore RMB drops by a thousand points to below 7.20, a three-month low, Euro and Yen once fell by 2%. Gold drops over 3%, London copper drops over 4%.
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Historically, gold has performed poorly after elections. Will it be different this time?
Citigroup believes that gold may face pressure in the short term after the US election, but the relationship between gold and the "Trump trade" is not significant. The structural bull market of gold remains stable, and investors are advised to buy when the gold price falls, expecting the price to reach $3,000 per ounce in the next 6 months.