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Gold falls 4.7%, BTC surges 29% since elections
Dollar poised for its sixth consecutive weekly gain, spurred by Trump’s election and strong U.S. inflation data.
Gold vs. Bitcoin: Since November 5, gold fell 4.7%, while Bitcoin surged 29%, reflecting favorable sentiment for crypto over gold.
Crypto Momentum: Trump pledges to remove SEC Chair Gensler; crypto advocate Bernie Moreno wins a Senate seat, boosting sector outlook.
Oil Prices Drop: Oil prices declined as weak demand from China and global demand concerns pressured Brent and WTI futures.
The dollar
The dollar was on track for its sixth consecutive week of gains, building on momentum from Donald Trump’s election victory last week. Hawkish signals from the Federal Reserve and robust U.S. inflation data further bolstered the greenback's strength.
In the near term, persistent consumer and producer inflation have cast doubt on potential rate cuts by the Federal Reserve. Chair Jerome Powell noted that the resilience of the U.S. economy provides the central bank with additional time to assess the timing of any rate reductions.
Gold and BTC
Since Donald Trump’s electoral win on November 5, gold and Bitcoin have charted divergent paths: gold prices have fallen 4.7%, while Bitcoin has soared 29%.
Gavekal Research attributes this divergence to differing market reactions to the Republican victory, which is seen as bearish for gold but favourable for Bitcoin and the broader cryptocurrency market.
Former President Donald Trump, a vocal supporter of cryptocurrencies, has pledged to remove SEC Chair Gary Gensler, whom the crypto industry views as an opponent. Additionally, blockchain advocate and Republican Bernie Moreno has secured a Senate seat, signaling further positive momentum for the sector.
Oil prices
Oil prices dropped on Friday as demand from China, the world's largest crude importer, remained weak amid its uneven economic recovery and worries about global demand prospects weighed.
Brent crude futures had declined by 65 cents, or 0.9%, to $71.91 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 62 cents, or 0.9%, at $68.08.
For the week, Brent was on track for a 2.7% decline, with WTI set to fall by 3.3%.
