Gold Prices Drop Following US Election Results, Silver Also Declines
Gold Prices Drop Following US Election Results, Silver Also Declines
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New Delhi: Gold prices have continued to decline following the recent US presidential election. On Thursday, the December futures for gold on the Multi Commodity Exchange (MCX) opened with a 0.37% drop, priced at Rs.76,369 per 10 grams. Silver December futures also saw a dip of 0.24%, trading at Rs.90,601 per kilogram.

In the past two days since the election, gold prices have fallen by Rs.2,100 per 10 grams, while silver has dropped by Rs.4,050 per kilogram.

Currently, the price of 24-carat gold stands at Rs.76,570 per 10 grams, 22-carat gold at Rs.74,720, 20-carat gold at Rs.68,130, and 18-carat gold at Rs.62,201 per 10 grams. Investors are now closely watching the upcoming US Federal Reserve policy announcement and other economic data to understand potential impacts on gold and silver prices.

Gold prices have experienced sharp fluctuations, ranging between Rs.78,500 and Rs.77,500 per 10 grams, largely influenced by a strengthened US dollar index, which rose to 105 following the election.

Market analysts suggest that a short-term bearish trend is likely to persist, with key resistance at $2,740 and support at $2,680.

Gold prices (XAU/USD) faced intense selling pressure as the European session began on Wednesday, plunging to around $2,700—marking a near three-week low. Republican nominee Donald Trump led the US presidential race, likely securing his position as the 47th president. This development triggered a sharp rally in the US Dollar (USD) and sparked heavy selling of the commodity.

Concerns over deficit spending and expectations of a more cautious approach to easing by the Federal Reserve (Fed) further pushed US Treasury bond yields higher, steering investors away from non-yielding assets like gold. Additionally, the risk-on sentiment, reflected in a strong rally in US equity futures, suggested that the safe-haven XAU/USD faced a downside bias, with its path of least resistance pointing downward.

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