Gold is suddenly not so glittery after Trump’s White House win

recent YORK — After ripping higher for much of this year, the worth of gold has suddenly become not so golden since Donald Trump’s win in the presidential election.

Gold fell more than 4% in the four days since Election Day, when the broad U.S. distribute economy climbed nearly 4%. That’s even though investors are expecting a Trump White House to drive responsibility rates lower and tariffs higher. Such a combination could push the U.S. government’s debt and expense boost higher, which are both things that can assist gold’s worth.

That’s left gold at $2,618 per ounce, as of late Monday, down from a record of roughly $2,800 set late last month. It also means gold has lost some luster as the best performing investments of the year. The largest trade-traded pool that tracks the worth of gold has seen its earnings for 2024 drop back below 27% from nearly 35% a couple weeks earlier.

What’s going on? Part of the decline has coincided with the strengthening of the U.S. dollar against other major currencies. Tariffs and trade wars instigated by the United States could push down the worth of the euro and other countries’ currencies, and a powerful U.S. dollar makes it more expensive for buyers using those other currencies to purchase gold.

Trump’s preference for lower taxes and higher tariffs is also forcing Wall Street to ratchet back expectations for how many cuts to earnings rates the Federal safety net will deliver next year. Fewer rate cuts would cruel Treasury bonds pay more in earnings than previously expected, and that in turn could hurt gold’s worth. Gold, which pays its owners zero dividends or income, can look less attractive when bonds are paying more.

Gold, of course, still has its reputation for offering a safer place for investors when things are shaky around the globe. Whether it’s been because of wars or political strife, investors often flock to gold when they’re not feeling confident about other investments. And with wars still raging in the Middle East, Ukraine and elsewhere, while political tensions still seem as high as ever, gold will likely remain in many investors’ portfolios.

“Gold continues to be the secure haven resource class of selection for both investors and central banks,” according to money managers at Robeco, which handles investments for large institutional investors.