Is now the right time to buy into gold?

With all the hype around stocks, crypto and forex, who needs safe-haven assets? Gold is down 8% in November.

Throughout 2024, gold prices have consistently set new records, reaching all-time highs driven largely by economic uncertainty, global instability, and investor interest. This solidified its reputation as a dependable investment in uncertain times. On the eve of the U.S. presidential election, gold was trading at $2,748 per ounce, just shy of its recent peak, and up more than 33% year-to-date.

However, right after the election, particularly with Donald Trump being the president-elect, gold took a hit, dropping over 8% in November. 

Early Thursday, XAUUSD was trading around $2,550, marking its fifth straight day of declines and down 8% from its all-time high of $2,790 set on October 30.

Apparently, Donald Trump's victory in the U.S. presidential election hasn’t been well-received by bullion. With Trump’s aggressive agenda, now isn’t the time for risk-averse strategies. Instead, investors are embracing full-on risk-taking.

America’s new president’s policies promise massive economic growth, lower taxes, and higher tariffs. With Congress now largely under Republican control, Trump’s stimulative measures are set to move forward. Against this backdrop, stocks, indexes, and cryptocurrencies are soaring to record highs.

Why isn’t gold rallying alongside its peers? Traditionally, gold is favored by contrarian investors seeking protection against risk, inflation, and economic uncertainty. It's regarded as a safe-haven asset, especially when stocks and currencies face challenges. However, the U.S. dollar is currently trading at a one-year high against the euro, with expectations of further strength, which is keeping gold prices under pressure.

Historically, a strong dollar tends to weigh on gold prices — a trend that persisted after the recent election. Trump's victory has further strengthened the Dollar Index, pushing it to its highest level since June 2024.

This post-election dip caught many investors off guard, sparking speculation about gold’s future. While some may view the price drop as a warning sign of instability, others see it as a potential buying opportunity.

This article was written in cooperation with TradingView