Bloomberg: Gold has performed poorly since Trump's election, and some funds may turn to the crypto market

Odaily News Trump's victory immediately boosted the stock and bitcoin markets, while gold took longer to turn around. Deutsche Bank said that in the two days after Trump's victory, gold's performance was the worst in at least 13 U.S. presidential election windows. Gold prices have fallen nearly 7% since Election Day, even as several other asset classes have received a boost after the campaign. "People are really interested in gold when everything else doesn't work," said Rob Haworth, senior director of investment strategy at Bank of America. Equities are doing well; you can even see solid returns in low-quality corporate credit. So you're less likely to look for other sources of portfolio growth." The rebound in the U.S. dollar since Trump's re-election has also been unfavorable to gold. At the same time, the U.S. economy appears to be in a fairly good shape, with inflation easing and the Federal Reserve in no hurry to continue lowering interest rates. John Hancock, co-chief investment strategist at the investment management firm, said that given the current strength in other parts of the U.S. economy, "gold would be a contrarian investment choice, and the feeling right now is that there is little risk, both fundamentally and geopolitically. It's not easy to go against the trend in this environment." "We have more attractive places to invest besides gold," said Jay Hatfield, CEO of Infrastructure Capital Advisors, noting that investment opportunities exist in financials and other riskier assets. Cryptocurrencies have also risen sharply since Election Day on expectations that Trump's policies will boost digital assets. The total assets of the BlackRock Bitcoin Spot ETF (IBIT) exceeded $40 billion for the first time in the past week. The surge coincided with large outflows from SPDR Gold Shares, the world's largest physical gold ETF. Kristina Hooper, chief global market strategist at Invesco Advisers, said: "A key impact of Trump's victory is that we may see less regulation of cryptocurrencies. This should pull at least some capital away from gold; some of this speculative demand will now likely shift to cryptocurrencies." (Bloomberg)