Trump's proposed policies hit gold hard

14 nov.

Gold prices have dropped 8.41% following Trump's victory, and the rationale is simple: Trump's policies are, as we've described in many places, inflationary, which will likely keep interest rates high. Realistically, with the unemployment rate already at 4.1%, attempting to boost GDP at this point will only drive inflation. These expectations are driving gold prices lower. Plus, there is the risk of de-escalation in the Ukraine and Russia war.

In the short term, the trend is bearish below Wednesday's high of $2,619, and traders will likely see a bounce toward $2,584 as an opportunity to short-sell, targeting $2,555 and then $2,528.

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