Trump’s victory has been influential in shifting investor interest from gold to cryptocurrencies

The price of gold hit a two-month low, falling to $2543, marking a loss of more than 7% in the first week after the U.S. presidential election. At the time of writing, the metal has recovered slightly and is trading at $2561

According to a 2-hour chart of XAU/USD provided by Quanda and based on TradingView data, the gold and silver market has taken a pause, which according to Citi’s head of commodities research, Maxim Leighton, could last another couple of weeks.

Leighton believes that the election of Donald Trump and his promises to cut taxes, as well as the rise in the dollar, have encouraged investors to move capital from precious metals into equities. At the same time, cryptocurrencies also showed growth, and the correlation between bitcoin and gold fell to -0.36, which was the lowest value in 11 months.

At the same time, the expert emphasized that gold remains a reliable safe haven asset. The policy of the new U.S. administration raises concerns among investors, especially because of Trump’s proposals to increase tariffs on imports, which prompts them to buy gold to protect against risks.

Canaccord Genuity analysts also believe demand from central banks in the U.S. and elsewhere will remain strong due to rising geopolitical tensions and economic uncertainty.

Even before the US election, analysts at JPMorgan predicted that Trump’s victory could lead to a rise in both cryptocurrencies and gold.