U.S. Presidential Election of 2024: Result

Hello, this is Capital Cat! With Donald Trump winning the 2024 U.S. presidential election, a new development has arrived. As Trump becomes president again, there is a lot of attention on how economic policy and market trends will change. Here, I will comment on the outlook for gold and its impact on the U.S. economy.

Moves in the presidential race

When Trump wins a seat, it goes down, and when Harris wins a seat, it goes up, making it a day of sharp fluctuations in the short term. And once Trump’s victory was confirmed, gold prices plummeted, dropping from the historic high of $2,730 to around $2,650. I can feel strongly that such days are not suited for system operation.

Trump’s victory and gold market trends

With Trump’s victory confirmed, gold prices fell sharply from the historic high of $2,730 to around $2,650. This reflects a sense of “everything’s priced in” after the election result was confirmed, leading to short-term profit-taking selling. Additionally, there is also the expectation that the Trump administration may again implement a weaker-dollar policy, which has influenced sentiment.

That said,the long-term uptrend in gold prices remains intactas we see it. Inflation concerns and geopolitical risks persist in the U.S., and in the long run, demand for gold as a safe-haven asset should stay solid. In particular, there is a possibility that Trump will again pressure the Fed to lower interest rates, which could raise inflation risk.

Outlook for the U.S. economy

Trump’s economic policy is likely to continue with tax cuts and deregulation, as in the past, which could be positive for certain sectors. The energy industry and manufacturing are expected to benefit. However, renewed tensions with China and intensifying trade frictions are anticipated, keeping international risk high. Additionally, expanded fiscal spending is expected, which could further widen the U.S. fiscal deficit.

Gold’s long-term outlook and caveats

Policies under the Trump administration may provide short-term positive effects for the stock market, but they also increase uncertainty. In particular, when geopolitical risks rise, investors tend to flock to gold, so future movements warrant close attention. Investors should also consider the impact of the Fed’s inflation measures on risk management.

In summary, Trump’s victory triggered a short-term adjustment in the gold market due to a material flush, but the long-term upward trend is believed to remain intact. Alongside the direction of the U.S. economy, ongoing careful monitoring of the market will be required.