“The price of gold hit a two-month low of $2,543, having lost more than 7% in the first week since the US presidential election. At the time of writing, the metal is trading at $2,561. 2-hour XAU/USD chart of the Quanda service. Source: TradingView. “There is a pause in the bull market for gold and silver, which may last for several more weeks,” commented Maximilian Leighton, head of commodity research at Citi. In his opinion, coming to power […]”, — write: businessua.com.ua
The price of gold hit a two-month low of $2,543, having lost more than 7% in the first week since the US presidential election. At the time of writing, the metal is trading at equal to $2561.
2-hour XAU/USD chart of the Quanda service. Source: TradingView.
“There is a pause in the gold and silver bull market, which may last for several more weeks,” commented Maximilian Leighton, head of Citi’s commodities research department.
In his opinion, Donald Trump’s coming to power with promises of tax cuts and strengthening of the dollar pushed investors to transfer capital from precious metals to stocks.
The cryptocurrency market also responded with growth, and the correlation between Bitcoin and gold prices fell to an 11-month low of -0.36.
However, the expert noted that the fundamental qualities of the metal as a safe-haven asset remain relevant. The policies of the new US administration, in particular Trump’s proposal to increase import tariffs, are raising fears among investors, so they will buy gold to hedge risks.
Due to growing geopolitical tensions and uncertain prospects for the economy, demand from the central banks of the US and other countries will also remain high, according to Canaccord Genuity analysts.
It will be recalled that shortly before the US presidential elections, JPMorgan analysts predicted that Trump’s victory would lead to the growth of cryptocurrencies and gold.
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