As expected, gold prices surged throughout the early Wednesday morning hours, as the likelihood of a Trump victory increased. The precious metal rose 4.8% to $1337.38 before the shock of the win began to wane, returning gold to sub-$1300 prices.
Because most election day charts called for a narrow Clinton victory, investors anticipated the continuation of Democratic fiscal policies rather than the radically changed policies entering the White House from the GOP, President Elect.
The largest single day jump for gold since Brexit occurred as investors flocked to safe haven investments, of which gold has historically been most sought. Gold and silver have and will remain commodities which retain their value and provide a hedge against inflation in times of economic uncertainty.
As of mid-Wednesday morning, precious metal prices seem to have stabilized, but investors are looking to the December FOMC meeting to learn the future of interest rates. Market volatility is likely to continue to a degree in the coming months as the world prepares for a new US Commander-in-Chief.
