Gold Spot Price Open: $1,278
Gold Spot Price Close: $1,280
Change in Gold Spot Price: +$2
Silver Spot Price Open: $18.41
Silver Spot Price Close: $18.46
Change in Silver Spot Price: +$0.05
While it initially looked like Wednesday might see massive gains for metals, such did not pan out by the time markets closed. When all was said and done, gold only gained about 2 dollars while silver added about 5 cents. Platinum and palladium finished the day mixed, with platinum losing a few dollars while palladium added more than ten.
Donald Trump Emerges Victorious
Flash back a few months ago and you would find it quite difficult to find a large grouping of individuals who were seriously convinced that Donald Trump had a realistic chance of winning this year’s presidential election. Even after markets closed on Tuesday, the momentum seemed to be in Clinton’s favor and, really, things were moving along as most had expected them to. Then, sometime around when polls began closing on the East Coast, it quickly became apparent that Clinton’s downhill coast to victory would be anything but that.
As the hours passed, the momentum of the election was flipped on its head and placed firmly behind the Trump camp. Before midnight even, people were beginning to come to terms with the fact that Hillary Clinton was now a long-shot to win. As people started realizing that Donald Trump was mere hours away from becoming the President-elect of the United States, stock markets in the US and around the world began to tank at considerable rates. Indexes were shedding points rapidly as there was a general fear of what a Trump presidency might mean, not only for the United States but, for the world at large. The Dollar followed the lead of stocks and also lost a few percentage points against the Euro and other rivals. While all this was happening, precious metals spot values were climbing. Then, everything changed once again as Trump took to the stage for what amounted to a victory speech and his first address as President-elect all at once.
Contrary to what so many people had expected, Trump appeared to be calm, subdued, and generally appreciative of what the country had just decided. Unlike the brazen, provocative man we saw all throughout the campaign, Trump humbly accepted victory and thanked those who voted for him while promising those that didn’t that he would fight for them as well. The unexpectedly somber nature of the new President did a lot in calming markets and bringing a sense of normalization back to the global marketplace.
Now, stock indexes that were deep in the red during overnight hours are posting gains while metals, which were looking at solid gains, are reeling and not seeing much support at all. The US Dollar Index once again followed US stocks and turned significant losses into healthy gains on Wednesday. Barring any of the hostile commentary we saw throughout the campaign season making an appearance in the coming days, it is difficult to envision global markets moving all that much. Of course, we will keep an eye on this as the days move forward, but for now we can all sit back and take a deep breath now that all of this is behind us.
Wrap-Up
Even though Trump’s victory is not pushing metals’ spot values skyward today, the feeling is that he is still very much a wildcard. Being one of the first ever presidents who has never served in the military of government prior to his election, there are a lot of questions we still do not have answers to. We are beginning to see speculation with regard to what his cabinet might look like, and as these appointments are set in stone and made public there will be plenty of reaction from investors. Through the end of the week, however, it is difficult to imagine there will be any shocking announcements made with regard to Trump’s electoral victory.
