(Kitco News) – Gold’s price decline since Trump’s electoral victory is as much about the party as it is the candidate, while global silver demand from the solar industry continues to rise as technology evolves and countries surpass their installation targets, according to precious metals analysts at Heraeus.
In their latest precious metals update, the analysts noted that historically, Republican victories have not been good for gold’s near-term prospects. “Gold dropped to $2,643/oz, the lowest price in 19 days, and the dollar strengthened as it became clear that Trump would return as US president,” they wrote.
“The dollar index saw more than a 1% gain against most major peers on the day of Trump’s win. Following the 2016 Trump victory there was an 11.6% fall in the price of the yellow metal.” The analysts pointed out that the slide in precious metals prices was not all about Trump. “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,” they said.
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