Giant
gold-backed ETF the SPDR Gold Trust (NYSEArca: GLD) meantime shrank yesterday for the 5th trading session in a row, reducing its shares in issue by 0.6% to the fewest since the end of September, while world No.2 the IAU product from Blackrock shrank further by value below the asset management group's Bitcoin product.
With Trump announced as President-Elect last Wednesday morning, US gold ETFs as a group had already shrunk by 10 tonnes for the week-ending Friday according to data compiled by the mining industry's World Gold Council.
That erased 1/3rd of October's net growth, which had been the strongest 1-month addition since Russia's all-out invasion of Ukraine began in March 2022, taking global gold ETF holdings of bullion to their largest size since October last year.
"Republican wins are not good for gold in the short term," says a note from analysts SFA (Oxford) for German bullion refiners Heraeus.
"Following the 2016 Trump victory there was an 11.6% fall in the price of the yellow metal. Since 1976, election of a Republican administration has led to an average 4.5% decline in the price of gold within 60 days compared to an average 3.8% rise for a Democrat win."
New York's S&P500 index last night closed above 6,000 points for the first time ever.
The Dollar meantime extended its surge on the currency market, rising towards 106 on its trade-weight DXY index – a 2-decade high when reached in the fall of 2022.
"As a safe-haven asset," says SFA for Heraeus, "gold tends to rise in a highly uncertain environment. [But] likely control of the House of Representatives and confirmed Republican control of the Senate increase the likelihood of conservative economic policy implementation and reduce uncertainty in geopolitical direction [if] not the details."
Gold bullion for London settlement last night fell through $2600 per Troy ounce for the first time since 2024's historic bull market reached that level 8 weeks ago, losing 7.2% from Halloween's fresh all-time high before rallying to $2610 as New York futures and ETF trading began.
That overnight slump in global prices found less negative demand from traders in China – the precious metal's No.1 consumer nation – where the price in Shanghai cut its discount against London quotes below $9 from Monday's $14 discount per ounce even as the Chinese Yuan fell to its weakest Dollar value on the currency market since the start of August.
The
UK gold price in Pounds per ounce also held firmer than Dollar quotes as the US currency rose, touching 5-week lows at £2020 for a loss of 6.2% from Halloween's record peak.
Euro gold prices were firmer still, albeit hitting 4-week lows at €2438 at last night's bottom for a loss of 4.7% from end-October's new all-time high.
Silver meantime extended the action in gold prices, plunging to 5-week Dollar lows at $30.19 per Troy ounce – down 13.4% from mid-October's 12-year high – before rallying more than 55 cents.
Copper fell to a 2-month low in Dollar terms and crude oil steadied near 2-week lows of $72 per barrel of European benchmark Brent.
