With Trump confirmed as U.S. president, gold has fallen over 3%, facing significant short-term pressure. However, I believe there is room for a more moderate recovery in the medium to long term.
Trump's victory has sparked expectations of policies that could favor tougher tariffs, tax cuts, and expanded fiscal spending, which could stoke reflation fears.
As we saw in 2020, the post-election pullback in safe-haven demand is unfolding, with traders 'buying the rumor, selling the fact.'
China's ongoing National People's Congress session is one to watch. As one of the largest gold buyers, aggressive stimulus measures or yuan devaluation from China could strengthen gold's long-term appeal.
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