Trump wins — markets in shock!
Trump’s win turned out to be a surprise for all markets and an opportunity for bullion banks to book substantial trading profits on the bear tack. But first reactions to shocks are often wrong.
Gold and silver were hit hard when on the night of 5 November Donald Trump captured not just the US presidency, but his Republicans both legislative houses as well. In early morning European trade today, gold was $2688, down $54 from last Friday’s close, and silver was $31.55, down $1.90.
US equity markets initially rated Trump’s presidency as very bullish, propelling the S&P 500 index to new highs. He is expected to pursue a protectionist, business friendly agenda which also led to a sharp rally in the dollar. The trade-weighted index is next:
