Muscat: Gold has plunged over $170 following the Republicans’ clean sweep in the election, as President-elect Trump’s proposed tariffs are seen as potential drivers of inflation.
According to a report by Mohamed Hashad, chief market strategist, Noor Capital, Gold prices fell and hit a two-month low on Thursday, driven by a strong dollar rally.
Spot gold fell 0.1% to $2,570.05 per ounce, its lowest level since September 12. US gold futures settled 0.5% lower at $2,572.90.
The US dollar index continued its upward march, making gold more expensive for overseas buyers. The Fed could hold its cards close to the vest until the Trump administration and new Congress are in place and try to enact some of the policies discussed during the campaign and post-election.
Oil prices fell over 2% on Friday due to concerns about weaker Chinese demand and a potential slowing pace of Fed interest rate cuts.
Brent crude futures fell by 2.09% to $71.04 a barrel, while West Texas Intermediate crude futures (WTI) fell by 2.45% to $67.02.
China’s oil refiners processed 4.6% less crude than a year earlier in October due to plant closures and reduced operating rates at smaller independent refiners.
The country’s factory output growth slowed last month, and demand woes in its property sector showed few signs of abating, adding
to investors’ concerns over the economic health of the world’s largest crude importer.
US President-elect Donald Trump has pledged to end China’s most-favored-nation trading status and impose tariffs on Chinese imports over 60%, much higher than those imposed during his first term.
Goldman Sachs Research economists have modestly lowered their 2025 growth forecast for China, following expectations of significant tariff increases under Trump. However, they would likely make larger downgrades if the trade war were to escalate further.
Oil prices also fell this week as major forecasters indicated slowing global demand growth. The International Energy Agency (IEA) forecasts global oil supply to exceed demand by more than 1 million barrels per day in 2025 even if cuts remain in place from OPEC+. OPEC cut its forecast for global oil demand growth for this year and 2025, highlighting weakness in China, India, and other regions.
As investors get prepared for a historically strong period for financial markets, it’s important to note that some of the post-election gains may have been front-loaded.
However, positive economic fundamentals continue to support the bull market. While policy uncertainty may lead to increased volatility, a resilient economy, and contained inflation could help markets overcome these challenges.
The final months of the year are historically positive for the stock market. However, it’s important to consider that some of the post-election rally may have already priced in future gains. Nevertheless, strong economic fundamentals contained inflation, and potential supportive policies position the market for continued growth, albeit at a potentially slower pace.
Bitcoin pulled back from near record highs on Friday as enthusiasm over a Donald Trump presidency waned, while overall market sentiment weakened due to rising uncertainty about U.S. interest rates.
The world’s largest cryptocurrency, which had recently climbed to unprecedented levels above $90,000 on speculation of favorable U.S. regulatory shifts under Trump, fell 2.6% to $87,634.6 Earlier in the week, it had reached a peak of $93,226.6. Investors are now watching closely to see if Bitcoin can cross the crucial $100,000 threshold. Despite Friday’s dip, Bitcoin is set to post an impressive weekly gain of around 14%, its strongest performance since late February. The cryptocurrency is also on track for its third consecutive week of gains.
The surge in Bitcoin has been fueled mainly by optimism surrounding Trump’s 2024 election victory. Significant institutional inflows into cryptocurrency-focused exchange-traded
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