On November 7th, spot gold fell below $2650 per ounce, the first time since October 15th, with an intraday drop of 0.34%. As of the time of writing, Shanghai gold is reported at 611.62 yuan per gram, down over 2% intraday, and Shanghai silver is reported at 7666 yuan per kilogram, down over 3% intraday.

Trump's victory brings inflation concerns, gold prices fall.

After the Republican candidate Trump won the US presidential election, the price of gold fell. SP Angel analyst said that the US dollar and US bonds soared due to the election results, weakening the appeal of gold, reflecting the market's concerns about the inflation policies that the Trump administration may introduce. Trump has previously talked about plans to reduce immigration, impose widespread tariffs, and cut taxes, all of which could potentially boost inflation. SP Angel added that gold buyers may also be preparing for more intense elections, but a Republican sweep may have led to the sale of such positions.

The key variable in 2025 is inflation, which makes the price of gold more likely to rise than fall.

HTSC pointed out that since 2024, the price of gold has continued to hit historical highs due to the combined effects of central bank gold purchases, expectations of US interest rate cuts, geopolitical conflicts, and other factors. While the current gold price has indeed priced in many expectations of interest rate cuts, there are still many catalysts for gold price increases: 1. The market may underestimate the risk of inflation volatility in the United States; 2. A possible increase in the US deficit is an important factor supporting the long-term rise in gold prices; 3. Central bank gold purchases may still be sustainable; 4. US interest rate cuts are causing a net inflow into global ETFs.