Gold prices increased 5% as election results rolled in and declared Donald Trump the U.S. presidential elect, and on November 9th skyrocketed to $1,330 before a hard correction to pre-election levels. The yellow metal currently sits at $1251.30 heading into Friday morning eastern standard time in the US.
Although stocks were down early post-election, they increased Wednesday. US stock indices went into the night slightly in the green, gold was up nearly 1% as was silver, leading some analysts to consider how this might be a fool’s rally.
Then, on Thursday, gold fell 1 percent thanks to a dollra increase to a 3 1/2 month high against the yen.
After many straight sessions in the green, the VIX remained down not only on Tuesday, but also Wednesday night.
Physical gold buying has flooded Europe in the wake of Trump’s victory with the yellow metal reaching a six-week high at $1,334.40 per ounce.
“Overnight, there has been a tremendous increase in our sales,” Oliver Heuschuch, head of trading for Degussa’s gold business, one of the biggest German physical dealers, told Reuters. “It’s nearly treble the size of regular business.”
Physical gold and silver demand increased in the United States before the vote. There was not much sign of buying in the United States Wednesday.
“Today’s figures are already some of the best on record, even surpassing our performance following the Brexit vote,” according to Chris Howard, director of bullion at the United Kingdom’s Royal Mint, about physical gold they store on behalf of customers.
“People are concerned about what the result will mean for international politics,” said Josh Saul, chief executive of the Pure Gold Company.