Bloomberg: Gold underperforms after Trump's election, some funds may shift to cryptocurrency market

Odaily Planet Daily News: Trump's victory immediately boosted the stock and Bitcoin markets, while gold will take longer to turn the tide. Deutsche Bank stated that in the two days following Trump's victory, gold's performance was the worst in at least 13 US presidential election windows. Since election day, gold prices have fallen nearly 7%, despite several other asset classes receiving a boost after the election. Rob Haworth, Senior Investment Strategy Director at Bank of America, said, "People are only truly interested in gold when everything else is not working. Stocks are performing well; you can even see steady returns on low-quality corporate credit. Therefore, you are unlikely to look for other sources of portfolio growth Since Trump's re-election, the rebound of the US dollar has also been unfavorable for gold. At the same time, the US economy seems to be in a fairly good state, inflation has eased, and the Federal Reserve is not in a hurry to continue lowering interest rates. John Hancock, co chief investment strategist of an investment management company, said that given the strong performance of other sectors of the US economy, "gold will be a reverse investment choice, and the current feeling is that the risk is very low, whether it is fundamental or geopolitical. In this environment, going against the trend is not easy Jay Hatfield, CEO of Infrastructure Capital Advisors, said, "In addition to gold, we have more attractive investment opportunities." He pointed out that there are investment opportunities in finance and other high-risk assets. Since the election day, cryptocurrencies have also risen significantly due to expectations that Trump's policies will boost digital assets. The total asset size of the BlackRock Bitcoin Spot ETF (IBIT) has exceeded $40 billion for the first time in the past week. This surge coincides with a significant outflow of SPDR Gold Shares, the world's largest physical gold ETF. Kristina Hooper, Chief Global Market Strategist at Invesco Advisers, said, "One key impact of Trump's victory is that we may see reduced regulation of cryptocurrencies. This should at least pull some capital away from gold; speculative demand is now likely to shift towards cryptocurrencies." (Bloomberg)