The financial markets are in turmoil. THE gold price (XAU/USD) falls to a three-week low, approaching the $2,700 mark, as the American dollar soars to its highest level in four months. This sudden turnaround follows the results of the first exit polls, suggesting a probable victory for Donald Trump in the presidential elections.
An election that upsets the balance of the markets
With 227 electoral votes to Kamala Harris's 189, Trump appears to have a decisive advantage in key states like Pennsylvania and Michigan. The confirmation of these results by media such as Fox News, which projects a Republican majority in the Senate, intensifies volatility in the markets.
Also read: Trump president, can gold break a new price record?
Investors anticipate economic policies focused on deficit spending and tariff increases. Result: US Treasury bond yields jump. The yield on the 10-year bond climbs 15 basis points to reach 4.44%, a level not seen since last July.
A wind of risk weighing on gold
Faced with this environment marked by a strong risk appetitesafe haven assets like gold are under intense selling pressure. American stock indices, for their part, are benefiting from this dynamic, further reinforcing the feeling of risk in the markets. Despite persistent geopolitical tensions, particularly around Iran and Israel, the yellow metal remains on the defensive.
The key role of bond yields
Rising yields are forcing investors to reevaluate their exposure to non-yielding assets like gold. In this context, capital flows are diverted towards more attractive investments, fueling a downward spiral for the precious metal.
Technical analysis: critical thresholds in sight
From a technical perspective, the $2,725 to $2,720 area provides key support. A break below this level could pave the way for a further fall towards $2,690, or even $2,657. Conversely, any rebound attempt will have to cross the immediate resistance located around $2,750. If this level is exceeded, gold could target the $2,800 mark, a strategic pivot point for a possible return to an uptrend.
Dollar in the lead against the main currencies
The table below illustrates the strength of American dollar against the main world currencies. The USD outperformed the Euro by 1.76% and posted notable gains against the British Pound and the Yen.
| Devise | Change (%) against USD |
|---|---|
| EUR | -1.76% |
| GBP | -1.20% |
| JPY | -1.65% |
The fluctuations reflect the direct impact of electoral uncertainties, giving the dollar temporary safe haven status.
A turning point for the global economy?
As the final election results loom, markets will remain on alert. The direction the U.S. economy takes under a possible new Trump administration could reshape current trends, hinting at major strategic adjustments.
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