The gold market was pricing for uncertainty into the US election but when the results were quickly clear, it slumped and has been on the back-foot since. It traded as low as $2537 today in the fifth straight day of declines.
It did find some support there with the low nearly matching a set of highs in August/September. The rebound in gold has also coincided with some buying in bonds and selling in Trump trades.
China is also on the backfoot, with equities there breaking lower following a period of consolidation after the October stimulus spike. Much of the buying gold in the past year has come from China retail, which is struggling to find investible assets. A further washout in stocks could pull people back into gold.
For now, caution is still warranted but note that Dec-Jan seasonals are particularly strong.
