Golden moment?

“The idea of a Donald Trump presidency might make the stock market nervous, but not gold bugs,” said Matt Egan on CNN Money. The price of the ultimate safe haven moved “almost in lockstep with Trump’s political prospects” ahead of the vote, rallying as his chances of winning the White House seemed to rise. On Wednesday morning, gold gained nearly 5%, reaching a high of $1,337 a troy ounce – its biggest one-day gain since the Brexit vote in June, noted the FT. The price eased after Trump’s unexpectedly “presidential” victory speech, but many think it is set to rise higher in a continuing “Trump Hump”.

Gold has already enjoyed a substantial rally this year, rising by 26% after three years of losses, as low or negative interest rates have bolstered demand. Robin Bhar, head of metals research at Socgen, believes it could enjoy “a knee-jerk rally” to $1,400, and end the year between $1,450 and $1,500/oz, given continuing jitters about the “radical change” wrought by a Trump presidency. The US election isn’t the only thing that has powered gold higher this week, said the International Business Times. Indian PM Narendra Modi’s “surprise move” to scrap 500 and 1,000 rupee notes overnight, so as to curb corruption and counterfeiting, “sent shock waves across households and small businesses”. (People have 50 days to deposit their notes in banks.) Many sought refuge in gold.