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Donald Trump Wins US Presidency Bid
Donald Trump wins the US Elections, S&P 500 futures and Nasdaq 100 futures tumble more than 5 percent. Gold, silver jump.
In a surprising neck-and-neck race that stunned the whole world, Donald Trump has won the US Elections. The global markets are in shock.
Right before midnight EST, S&P 500 futures and Nasdaq 100 futures tumbled more than 5 percent.
Gold, however, rallied and had its biggest single-day gain since June — likely because gold is a safe haven for investors during times of uncertainty. CNBC reported that gold surged nearly 5 percent, its strongest in more than five weeks. As of midnight EST, spot gold rose 4.9 percent to $1,337.40 an ounce but plunged to $1,302.42 after Trump took to the stage to deliver his speech.
Gold jumps, silver follows
The rally in gold prices also dragged silver higher. Silver was up 1.58 percent at$18.64 per troy ounce before market open. Spot silver shot up as far as $18.84 an ounce and has steadily trended downwards as of 1am PST.
As for currencies, the dollar index fell 1.3 percent to 96.59. The Mexican peso, however, nearly went into a freefall when it dipped as much as 13 per cent — its largest drop since the 1994 devaluation crisis.
According to the Wall Street Journal, Trump’s win could hurt the dollar and other risk-sensitive currencies such as the Mexican peso, but could also boost prices for gold and the yen.
However, Deutsche Asset Management chief investment officer, Stefan Kreuzkamp, assured investors that Trump “might surprise markets on the positive side.” based on his “pragmatism, ability to adapt and generally little political commitment.”
Trump won 276 electoral college votes against 218 for Hillary Clinton, former First Lady and former US Secretary of State. Trump’s victory also came hand in hand with the Republicans gaining back control of both houses of Congress. Clinton has conceded to Trump during in the early hours of Wednesday morning.
Trump is set to the be United States’ 45th president, but his historical win does not come without uncertainty. As CNN puts it, “there are deeper, more fundamental questions about Trump’s presidency that will be key to his capacity to unify a deeply divided country .” His win last night may also affect the US Federal Reserve’s hold off from raising interest rates in December.
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