Gold Price News: Gold Eases In Post-US Election Calm

Gold prices were marginally lower on Friday, ending a bearish week for the precious metal overall, as the dust settled following the US Presidential election on November 5.

Prices eased slightly to around $2,690 an ounce on Friday afternoon, compared with a high of $2,709 an ounce on Thursday. The latest price action showed a degree of calm had prevailed over the gold market following sharp volatility mid-week as it became clear on Wednesday that Donald Trump had won the US Presidential election.

Gold prices had traded as high as $2,750 an ounce ahead of Tuesday’s vote, with uncertainty over the outcome driving investment in safe-haven assets. With the election uncertainty over, prices fell sharply to $2,653 an ounce on Wednesday.

Markets weigh impact of Trump win on gold

The implications of Trump’s political victory for gold are somewhat mixed. On the one hand, the markets generally expect more trade tariffs, a stronger dollar and higher interest rates, all of which are bearish factors for gold prices. On the other hand, inflation is expected to be higher and this can support investment demand for gold as an inflation hedge.

Geopolitics is a further wildcard factor, as any peace deals in current conflict zones could work to curb safe-haven demand for precious metals. However, it remains to be seen what can be done by the incoming Trump administration to diffuse conflicts in Ukraine and the Middle East.

Elsewhere, the US Federal Reserve cut interest rates by 25 basis points as widely expected on Thursday, which did appear to provide some support for gold, albeit with prices still some way off the highs seen earlier in the week.

Upcoming data to watch out for

Monday is looking light on economic data releases and the markets will be looking ahead to Tuesday, when several US Fed officials are set to give speeches. This will be followed by Wednesday’s monthly US inflation data for October, providing potential clues on the path forward for interest rates.