Amid signs of a more tempered Trump and optimism his policies could spur economic growth gold prices plung in the days following the president-elect’s victory speech.
The moment Donald J Trump secured the US Presidential election and a glittering political future…was conversely the moment that gold starting losing its luster… While investors piled into the safe-haven when polls showed Trump's chances for victory were becoming a reality, now that's he's won, they are selling… And part of this is due to promises like this… SOUNDBITE: U.S. PRESIDENT-ELECT, DONALD TRUMP, (ENGLISH) SAYING: "We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We're going to rebuild our infrastructure. Which will become, by second to none. And we will put millions of our people to work as we rebuild it." Amid signs of a more tempered Trump and optimism his policies could spur economic growth, gold prices plunged in the days following the president-elect's victory speech. Over the course of the week, the precious metal lost over 5% of its value, eventually closing at just over 1227 dollars on Friday. SOUNDBITE: NAEEM ASLAM, CHIEF MARKET ANALYST AT THINK MARKETS (ENGLISH) , SAYING: "Everyone was expecting now there is a possibility of trade wars and the possibility of another war in the GCC (Gulf coast countries) or how he is going to trade there. But in his acceptance speech he literally said okay that's not going to happen. Going forward I'm going to use more analytical and strategic method and that's how I'm going to run this country. Hence, we're seeing the sell off." The market is also now betting on the Federal Reserve raising interest rates more quickly. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-interest bearing gold.