The price of gold futures plunged Wednesday in the wake of former President Donald Trump’s decisive victory in the US presidential election as the news sent bond yields, the US dollar, and stocks strongly higher.

Gold futures dropped as much as 3% to as low as $2,673 per troy ounce. The precious metal now has shed about 5% of its value since peaking at its latest all-time high of $2,805 per troy ounce a week ago.

Gold has enjoyed a year long rally driven by rising central bank purchases, geopolitical tension, and declining interest rates. Expectations that those will persist have led many analysts to project further gains in the price of gold, with Goldman Sachs predicting gold will reach $3,000 per troy ounce by the end of 2025. That rally reversed amid concerns that Trump’s proposed tariffs and immigration could reignite inflation.

Adam Turnquist, chief technical strategist for LPL Financial, said higher growth and inflation Expectations drove bond yields and the dollar higher Wednesday. That makes gold, which offers no yields, less attractive to investors.

Gold’s Negative Correlation to the Dollar

The 10-year US Treasury yield rose 17 basis points (bps) to a four-month high of 4.46%, even as the Federal Reserve prepares to cut its benchmark interest rate again Thursday. The US dollar, meanwhile, rose 1.6% against a basket of other currencies.

“Continued strength in the dollar could weigh on international stocks, especially emerging markets, and most commodities,” Turnquist said. “Platinum, gold, and silver are the most negatively correlated commodities to the greenback.”

Other metals commodities such as silver, platinum, and copper also traded sharply lower Wednesday.