• Gold prices have fallen to their lowest levels in almost two months as the dollar continues to strengthen following Donald Trump’s election victory last week.
• The recent decline has put a damper on bullion’s rally, which saw a series of record-breaking milestones last year.
• “There is a pause in the bull market for gold and silver, and that could continue for the next few weeks or so,” said Maximilian Layton, Citi’s head of global commodities research.

Gold prices extended their decline to a nearly two-month low on Thursday as risk appetite increased and the dollar continued to strengthen following Donald Trump’s election victory last week.

spot prices The yellow metal has fallen nearly 7 percent since last week’s election results, falling to $2,559.2 per ounce. Gold futures are trading at $2,567.3 on the New York Mercantile Exchange.

The latest decline, which saw gold fall in six of seven sessions since Trump’s victory, follows a series of record-breaking milestones for bullion last year.

“There is a pause in the bull market for gold and silver, and that could continue for the next few weeks or so,” said Maximilian Layton, Citi’s head of global commodities research.

He noted that gold prices will likely trade lower as U.S. stocks recover. About lower tax and regulatory expectations. Trump’s return to the White House Sends US stocks to record highs Even though it was a rally He took a breath.

Post-election risk appetite also increased crypto currencies. Bitcoin briefly trades above $93,000 Hoping that Trump will do this for the first time on Wednesday fulfill a series of promises made to the industry.

“It looks like Trump will have a red sweep and more deregulation, the lower tax environment will move money into stocks, money into Bitcoin and money into gold,” Layton told CNBC.

The dollar index also climbed to a one-year high, making gold priced in US dollars expensive for those who hold other currencies.

“The rise in the U.S. dollar reflects how markets are pricing in Trump’s inflationary policy agenda, which primarily includes tax cuts and tariffs,” Vivek Dhar of the Commonwealth Bank of Australia said in a note Wednesday.

Nicky Shiels, head of metals strategy at processing services firm MKS Pamp, said stocks were currently in “euphoria territory” as they priced in the market-friendly outcome of the election. “Until Trump’s trade honeymoon phase is complete, gold and silver are in the midst of a less bullish repricing,” he said.

Despite the decline in gold prices, market observers are still optimistic about bullion fundamentals.

Layton said the fundamental drivers of the gold market are still in place. Following Trump’s election victory, there has been increasing speculation about tariff proposals and their potential impact on the global economy.

“If this happens, people will buy gold and silver to hedge downside risks,” Layton said.

Additionally, central bank demand for gold is expected to remain strong, if not rising, due to the U.S. fiscal outlook and rising geopolitical tensions, according to financial services firm Canaccord Genuity. Central banks bought record amounts Gold in the first half of 2024

“We believe that if President-elect Trump’s second term resembles his first term with a confrontational approach towards friends and foes alike, strong international demand for gold as a reserve asset will likely persist relative to demand for treasury securities,” the bank’s analysts wrote. in a report.

Canaccord Genuity said rising debt, geopolitical tensions and central bank demand are expected to support higher gold prices.