SPDR Gold Shares (NYSEARCA: GLD), the world’s largest gold-backed ETF, saw a major shift as investors withdrew over $1 billion last week, marking the most significant outflow since July 2022.
This came in response to Donald Trump’s election victory, which spurred a rally in US stocks and the dollar, reducing gold’s appeal. The sell-off in GLD contributed to a 1.9% drop in spot gold prices and extended a two-week decline in gold-backed ETF holdings, based on Bloomberg data.
Leading up to the election, many investors sought gold as a safe haven, concerned about potential political uncertainty. However, Trump’s clear victory, including his success in critical swing states and the Republican retention of the Senate, prompted a shift. With the election outcome no longer uncertain, investors seized the opportunity to cash in on their gold investments.
Trump’s win has strengthened the dollar and fueled optimism in the stock market, making gold less attractive, especially for those holding foreign currencies.
Also read: Bitcoin Reaches Record High Following Trump Win
Meanwhile, cryptocurrencies like Bitcoin gained traction amid Trump’s positive stance on digital assets and a potentially crypto-friendly Congress. On Monday, gold prices continued their decline to a one-month low, with gold mining stocks also seeing a drop.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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