US election: Gold drops over 1% as dollar rises; Trump leads

Gold bars

Gold prices declined on Wednesday as the dollar strengthened, driven by the lead that Republican candidate Donald Trump currently holds over Democratic opponent Kamala Harris in the early results of the US presidential election.

December gold futures fell by 1.33%, or $36.5, to $2,713.20 an ounce as of 09:53 am KSA time, and spot prices dropped by 1.21% to $2,710.84 an ounce.

Silver futures for December delivery also declined by 3.02% to $31.785 per ounce, and spot platinum prices fell by 1.40% to $987.18 an ounce.

This coincided with a rise in the U.S. dollar index, which measures the dollar’s value against a basket of six major currencies, up by 1.76% to 105.24 points.

This surge followed Trump securing 246 electoral college votes compared to Harris's 194 votes thus far.

Political risk premiums from the U.S. election developments have recently played a significant role in gold's price rise, with investor concerns lingering over potential voter disputes and the possibility of unrest similar to the Capitol events in January 2021.