The recent US presidential election has triggered significant shifts in the global financial market, particularly in the commodities sector. The victory of Donald Trump has had a profound impact on gold prices, which have been on a downward trajectory since the election results were announced.

On Thursday, the December future contracts of gold on the Multi Commodity Exchange (MCX) opened with a decline of 0.37 per cent at Rs 76,369 per 10 grams. Similarly, silver December future contracts were trading 0.24 per cent low at Rs 90,601 per kg. This trend has been observed over the last two days, with gold prices falling by Rs 2,100 per 10 grams and silver prices by Rs 4,050 per kg.

The India Bullion and Jewellers Association Ltd (IBJA) has reported that the price of 24-carat gold is Rs 76,570 per 10 grams, the price of 22-carat gold is Rs 74,720 per 10 grams, the price of 20-carat gold is Rs 68,130 per 10 grams and the price of 18-carat gold is Rs 62,201 per 10 grams.

Impact of US Dollar Strength on Gold Prices

Pranav Mer, Vice President, EBG-Commodity & Currency Research, JM Financial Services, has attributed this decline to the strong US dollar following Trump's win. He stated that gold and most other commodities are trading in the negative territory, weighed down by the robust US dollar. The focus now turns to the US Fed's policy outcome and other economic data.

Mer further added, "We expect more correction only if the given supports are breached and sustained, failing to which prices may again resume its upward journey. Resistance is seen at 78,000 on MCX and $2,755 in an international spot.

The gold market has been experiencing intense volatility, with prices fluctuating sharply between Rs 78,500 and Rs 77,500 per 10 grams. This volatility is largely due to the US election outcome, which has bolstered the dollar index, pushing it to 105.

Short-Term Bearish Sentiment in the Market

Jateen Trivedi from LKP Securities noted, "This dollar strength pushed gold to lows of Rs 77,500 per 10 grams and $2,700 in dollar terms." Experts suggest a short-term bearish sentiment in the market, with a critical resistance level at $2,740 and support at $2,680. This trend is expected to continue in the near future, with the market closely watching the US Fed's policy outcome and other economic data.

Historically, the US presidential elections have had a significant impact on the global financial market. For instance, the 2016 election saw a similar trend with gold prices falling in the aftermath of Trump's victory. However, it is important to note that these trends are often short-lived and the market usually stabilizes in the long run.

In conclusion, the recent US presidential election has had a significant impact on the global commodities market, particularly gold prices. The strong US dollar following Trump's victory has led to a decline in gold prices. However, experts suggest that this is a short-term trend and the market is expected to stabilize in the long run. The focus now turns to the US Fed's policy outcome and other economic data, which will play a crucial role in determining the future trajectory of gold prices.