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Gold Daily | Spot Gold Declines Amid Dollar Surge Following Trump's Election Victory

AInvestWednesday, Nov 6, 2024 7:00 am ET
1min read
【Latest Gold Price and Recent Trends】

As of the latest update, spot gold is trading around $2727 per ounce, showing a slight decline of 0.8%. Earlier, it touched $2701.46 per ounce. The price has been pressured by Trump's victory in the U.S. presidential election, which caused a strong rebound in the dollar.

【Technical Analysis】

Gold prices have shown resilience, rebounding over $25 from the day's low. Analysts suggest that from a technical perspective, gold remains a "buy on dips" opportunity. Key resistance is seen at $2746, a level that needs to be broken for gold to resume its upward trend. If gold sustains trading below $2730, it may face support at the $2718 and $2695 levels in succession.

【Market Sentiment and Economic Background】

Trump's victory has led to significant volatility in the financial markets. The U.S. dollar surged, with the index reaching 105.31, the highest in four months, as expectations of Trump's fiscal and trade policies are anticipated to impact inflation and Treasury yields positively. Gold is traditionally viewed as a hedge against geopolitical and economic uncertainty; however, with the dollar strengthening, gold has faced downward pressure.

【Analyst Opinions】

Analysts largely opine that Trump's policies could lead to higher inflation and bond yields, thereby supporting the dollar. Nordea's chief analyst noted the strong market reaction favoring the dollar. Meanwhile, Kyle Rodda from Capital.com suggested that while immediate movements are influenced by the election, Trump's potential victory could eventually benefit gold due to potential high deficit spending and uncertain U.S. foreign policy. The Federal Reserve's upcoming policy meeting is also expected to provide further market direction, with an anticipated rate cut of 0.25%.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.