Gold prices plunge as Trump's decisive win drives up dollar
Bullion fell the most since June and copper had the biggest drop since May as Trump's win rippled through global markets and sent the greenback on course for its best day since 2020. A surge in the currency makes metals pricier for many buyers.
Trump clinched victory after taking key battleground states, while Republicans also gained control of the Senate. The definitive outcome prompted some traders to book profit after seeking safety in gold last month amid the possibility of a contested election. The precious metal in October had gained 4.2% or nearly $110, with money managers' bullish bets near a four-year high.
The selloff in gold is «a combination of the fact that positioning is rather heavy, and stronger yields and the US dollar,» said Nicky Shiels, head of metals strategy at Geneva-based MKS PAMP SA. «The removal of some US political uncertainty given the decisive and quick win by Trump also ensures some geopolitical premium is unwound.»
Copper sank as much as 4.3% during a broad selloff on the London Metal Exchange, tracking steep losses in the Chinese yuan. Alongside the immediate impact of a weakening currency in the world's top commodities consumer, traders are also bracing for a potential knock to demand if Trump follows through with pledges to deepen the US-China trade war.
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