The yellow metal suddenly took a hit! Reuters analysts blame the drop in gold prices on Donald Trump being elected as the US president.
During the last week, the price of gold has fallen by nearly 5%. This is the sharpest drop in three years! Meanwhile, the dollar seized the moment and significantly gained value.
Experts interviewed by Reuters explained the slump in gold prices by the strengthening of the US dollar. After President Trump's re-election, they expect a new wave of inflation and a slowdown in the Fed's rate-cutting cycle.
The Republican victory in the presidential election had a negative impact on gold prices. However, the situation could change in the future, Carlo Alberto De Casa, an analyst at Kinesis Money, says.
Last Tuesday, on November 12, the yellow metal tumbled below $2,800 per ounce. Platinum, palladium, and silver also became cheaper.
Notably, the market value of the precious metal has increased by 25%–30% this year. In August, the price of a gold bar exceeded $1 million for the first time. Analysts surveyed by Bloomberg attributed this to the fact that central banks of developing countries were ramping up their gold purchases.
