Have Gold Prices Been Impacted Since Trump’s Victory? We Ask Experts

Alifiya H Ujjainwala
Alifiya H Ujjainwala November 8, 2024

Gold prices fell to a three-week low as investors flocked to the US dollar following the announcement of Donald Trump winning the 2024 US presidential election. Reports suggest that gold price is under considerable downward pressure, following the recent events.

Backing this, Mohamed Hashad, Chief Market Strategist, at Noor Capital, suggests that the dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 105.22 points compared to the previous daily close of 103.42 points.

“The DXY Index fell to its lowest level on Wednesday’s trading at 103.70 points compared to the highest levels recorded at the same current levels. There is an inverse relationship between the US dollar and gold, which led to a sharp decline in the precious metal after the rise achieved by the US currency,” he stated.
 
XAU/USD has suffered since Trump’s victory announced

Mohamed further stated that there is an “inverse relationship between the US dollar and gold,” which led to a “sharp decline” in the precious metal after the rise achieved by the US currency.
“Gold futures fell to $2,675 per ounce, compared to the previous daily close, which recorded $2,753 per ounce. The precious metal rose to its highest level on Wednesday’s trading at $2,758, compared to the lowest levels recorded at $2,660 per ounce,” he remarked.

Mohamed Hashad, Chief Market Strategist, Noor Capital

 

Trump tariffs posing a bigger threat to China’s economy?
Donald Trump’s threat to impose a 60% tariff on US imports of Chinese goods presents significant risks to the growth of the economy, already grappling with several internal challenges. The country’s economic slowdown comes with a combination of factors, including a persistent property market crisis, weak domestic demand, and deflationary pressures.

In 2018, China’s property market was a major engine of growth, accounting for nearly a quarter of the country’s economic activity. However, since 2021, the real estate sector has been in a sharp decline, severely impacting local government revenues and exacerbating fiscal pressures. This downturn has left many local governments burdened with unsustainable levels of debt, limiting China’s capacity to respond effectively to external economic shocks, such as the potential impact of new tariffs.

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