The price of gold turned slightly negative from the sharp gains made earlier on Wednesday, after a conciliatory victory speech from US President-elect Donald Trump also helped the dollar rebound. Gold had surged by nearly 5 percent to a six-week high of $1,337.40 an ounce as it emerged that the Republican nominee had triumphed over Democrat Hillary Clinton in the presidential election, a surprise for markets which prompted investors to seek refuge in perceived safe-haven assets like gold.
But gold's price later fell below $1,280 an ounce as the dollar turned higher, US stocks rose sharply and US Treasury debt yields touched multi-month highs. Spot gold was down 0.2 percent at $1,272.40 an ounce by 2:38 pm EST (1938 GMT). US December gold futures settled down 0.1 percent at $1,273.50, with volume surging above 785,000 contracts, the highest for the most-active contract on records going back to 1980.
"Mr Trump managed to sound quite conciliatory and presidential in his victory speech this morning," Mitsubishi analyst Jonathan Butler told the Reuters Global Gold Forum on Wednesday. "This calmed the markets and helped boost the dollar, eroding gold's gains," he said. "(But) the Trump win is still essentially bullish for gold." Spot silver was up 0.2 percent at $18.38 an ounce, having risen to its highest since October 3 at $18.996 an ounce. Platinum was down 1.3 percent at $989.25, while palladium was up 1.5 percent at $672.75, also off five-week highs for both markets.
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