Thu Nov 07 12:57:40 UTC 2024: ## Gold Prices Tumble After Trump’s Election Win, Experts Expect Further Decline

**Mumbai, India:** Gold prices in India experienced a significant decline on Thursday, mirroring a global correction in the precious metal following Republican Donald Trump’s victory in the 2024 US presidential election. Analysts predict further short-term pressure on gold rates due to political and economic factors that have dampened the bullion’s safe-haven appeal.

MCX gold prices have fallen over 4%, or about ₹3,400 per 10 grams, from their record high, while silver has corrected 10%, or approximately ₹10,000 per kg, from its peak in late October. International gold, which reached a record high of $2,790.15 last week, has since lost over $120.

Experts attribute the decline to a confluence of factors including the US dollar’s strengthening post-Trump’s win, expectations of a slower interest rate cut trajectory by the US Federal Reserve, easing geopolitical tensions in the Middle East, and year-end profit booking.

Ajay Kedia, Director of Kedia Advisory, anticipates this correction to continue in the short term, citing the combined impact of economic and political developments. He predicts MCX gold rates may fall to ₹74,000 – 74,500 levels and MCX silver prices may drop to ₹87,000 – 88,000 in the next 1-2 months.

Sandip Raichura, CEO of Retail Broking and Distribution at PL Broking, echoes these concerns. He points to gold’s inverse relationship with the USD, which is expected to gain strength following the election. He predicts volatility in the next few weeks, with potential for a reversal in the initial kneejerk reaction to the USD’s rise.

Despite the current downward trend, historical data reveals that gold prices typically experience short-term corrections after US elections but tend to rally in the long term. Over the last six presidential terms, gold prices have delivered positive returns in five of them, suggesting its resilience across different political environments.

However, investors are urged to consult with certified experts before making any investment decisions, considering the complex interplay of factors influencing gold prices.

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