Gold rose along with Trump
Precious metals got a kick-start after the United States elected Donald Trump as its 45th president on November 9, 2016. Trump received over 270 of the 538 electoral college votes needed to secure a majority.
Trump will be inaugurated on January 20, 2017. The election will make a mark in history, as it was one of the most unusual, divisive, and wrongly predicted US presidential elections of all time.
Gold futures for December expiration rose almost 5% as the race to the White House came to end. December gold futures rose almost $28.9 per ounce, peaking at $1,338.3. Silver also rose 2.2% and touched the $19 mark, its highest level since October 3, 2016.
The rise in precious metals was most likely due to rising fears in global markets due to disbelief about Trump’s victory. Investors likely sought refuge in the haven appeal of gold after Trump was elected. These actions were likely expected by the overall world markets.
Platinum and palladium were trading close to $1,007 and $658 per ounce, respectively, on November 9.
Major precious metals mining companies Barrick Gold (ABX), AngloGold Ashanti (AU), Newmont Mining (NEM), and Sibanye Gold (SBGL) received pushes as soon as news of the election results flooded the markets.