Gold price slumps after Trump victory – Commerzbank
The price of Gold came under pressure in the immediate aftermath of Donald Trump's election victory, falling by more than 3% to $2,650 per troy ounce.
Trump's policies are likely to increase inflation risks
“From last week's record high, Gold had thus fallen by around $140. Selling pressure was caused by a significantly stronger US dollar and a sharp rise in US bond yields. In previous weeks, neither of these factors had been a hindrance for Gold. However, the extent of the USD appreciation and the rise in yields were apparently too strong this time to be ignored by Gold.”
“In addition, Gold had built up considerable correction potential due to the strong price increase in the previous weeks, which was not based on a change in interest rate expectations. Some market participants apparently took this as an opportunity to close out positions. This can be seen, for example, from the outflows from Gold ETFs that have been observed for a few days.”
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.