Gold Trades Lower as the Dollar and Yields Surge Following Donald Trump's U.S. Election Win
Gold traded sharply lower midafternoon on Wednesday as the dollar and treasury yields surged following a U.S. election that returned Donald Trump to the presidency.
Gold for December delivery was last seen down US$72.50 to US$2,677.20 per ounce.
The drop comes as commodities were broadly lower after Donald Trump defeated Democratic candidate Kamala Harris, returning him to the White House four years after losing the presidency to Joe Biden. Trump has promised to impose blanket tariffs on U.S. imports, which could spur additional inflation even as the Federal Reserve's Federal Open Market Committee begins its two-day policy meeting, with a 25 basis point cut to rates expected.
The dollar was sharply higher following Trump's win. The ICE dollar index was last seen up 1.55 points to 104.976.
Bond prices dropped, pushing yields higher and raising the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.272%, up 7.7 basis points, while the yield on the 10-year note was up 13.5 basis points to 4.422%.
Source: MT newswires
