Gold and Silver Prices Fall Sharply After US Election

“Gold and silver prices drop post-US elections, fueled by a stronger US dollar and shifting market dynamics.”

Gold and silver prices have recently experienced a significant decline, largely influenced by the outcome of the 2024 US presidential elections. After Donald Trump’s victory, market dynamics shifted, and both metals saw steep drops, particularly in futures markets. As of November 7, 2024, gold prices on the Multi Commodity Exchange (MCX) for December futures fell by 0.37% to Rs 76,369 per 10 grams, while silver dropped by 0.24%, trading at Rs 90,601 per kg.

This decline follows a broader trend that has been seen over the past few days, with gold losing about Rs 2,100 per 10 grams and silver dropping by Rs 4,050 per kg.

Experts attribute this drop to a surge in the value of the US dollar, which typically exerts downward pressure on commodity prices like gold. The dollar index recently hit a high of 105, further exacerbating the weakening of gold and silver prices .FXEmpire.

The victory of Donald Trump is considered a significant driver behind this shift. The strong US dollar, bolstered by Trump’s policies and the market’s anticipation of his economic stance, has contributed to a bearish sentiment for precious metals. Additionally, Trump’s focus on domestic economic growth, energy policies, and strong trade relations, particularly with China, has sparked confidence in the US economy, diverting investor attention from gold as a safe haven.

However, analysts caution that this decline may not be permanent. The market is closely watching the Federal Reserve’s policy outcomes and other key economic data, which could either further suppress precious metal prices or trigger a rebound if the support levels break.

Resistance levels for gold are expected to be around Rs 78,000 on MCX, with international prices facing resistance at $2,755 per ounce. On the other hand, a break below the support levels could see further declines.

Looking ahead, the trajectory of gold and silver prices will largely depend on ongoing political and economic developments, including Trump’s policies and the broader global economic environment. Investors and market watchers will need to stay alert for any signs of instability or changes in economic policy that might drive prices back up.

This shift is also a reminder that gold, while traditionally seen as a hedge against economic instability, can be volatile in response to political events and shifts in market sentiment. Thus, as we head into the final stages of the year, it’s crucial for investors to carefully monitor both the political climate and the global economic indicators that influence these precious metals.

As per the India Bullion and Jewellers Association Ltd (IBJA), the current rates for gold are as follows: