EBC Markets Briefing | Optimism around gold has faded since US election
Gold prices stayed nearly a two-month low on Wednesday in the face of a robust dollar, optimism about economic growth under a second Trump administration.
Since the Fed started cutting its benchmark short-term rates a couple of months ago, the 10-year Treasury yield has actually risen, driven by inflationary policies that have been pencilled in.
Traders have reacted to the election results by trimming bets on Fed cuts next year, with rates seen staying above 4% until May 2025.
The world’s largest gold-backed ETF recorded it biggest weekly outflow in more than two years last week as traders to book profits. Bullion has lost around $180 per ounce from its all-time peak hit earlier this month.
They sought haven in gold last month as expectations were high that the election would turn out to be a contested one, but it turned out Trump swept all key battleground states.
The new president told Putin not to escalate in Ukraine last Thursday, the first phone conversation between the two men since Trump won the election, said several people familiar with the matter.
Gold dipped below 50 SMA without much difficulty – an ominous sign of further pains ahead. The head and shoulders top pattern suggests the price could inevitably slide towards 2,550.
EBC Capital Market Consulting Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Trading Platform Security or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
EBC Markets Briefing | "Blue Wave" poised to sweep across stock markets
Stocks sink amid AI wipeout, dollar shines ahead of NFP
US Payrolls in Focus as Wall Street Rout and Falling Yields Cap the Dollar | 6th November, 2026
Week Ahead – Inflation and geopolitics in focus as US political landscape shifts
The dollar saves the day
Tech Stocks Lead US Selloff Ahead of Payrolls
Technical Analysis – USDJPY stays rangebound, pinned at support near 158.00
