AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

11/6/2024: Gold tumbles on Trump win

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold tumbled 2.7% to close under $2,668 as the dollar and Treasury yields surged on Donald Trump's decisive win in the US Presidential election. Silver fell 4.4% to finish at $31.22 an ounce.

The dollar rocketed 1.6% higher to a four-month peak after Forex markets speculated that President-elect Trump's aggressive policies on taxes, tariffs, and immigration will lead to faster economic growth and upward pressure on prices.

For the same reasons, Treasury yields leapt sharply higher, with benchmark 10-year yields pushing up near 4.5% and 30-year yields rising by the most since 2020.

A stronger dollar weighs on gold and other commodities by making them pricier in other currencies, while higher yields increase the opportunity cost for holding gold instead of bonds.

Trump's policies are also expected to slow the Fed's unwinding of high interest rates in coming months.

All three major US equity indexed also blasted higher, with the Dow adding 3.6% while the S&P 500 picked up 2.5% and the Nasdaq 2.9%.

Platinum and palladium fell 1.2% and 3.6%, respectively,

At the New York spot close; gold dropped $72.70 to $2,667.60; silver shed $1.43 to $31.200; platinum slid $11.85 to $988.85; and palladium retreated $38.80 to $1,039.80 an ounce.