The price of gold fell on Wednesday after the US presidential election was won by Donald Trump.
The fall in the safe-haven metal was accompanied by selling of US government bonds, sending Treasury yields higher, and a strong rise in the US dollar and US equities.
Gold spot prices fell to below $2,680 an ounce, having peaked at over $2,780 last week.
As the results of the US voting came in overnight, Treasury yields began to pick up, with the 10-year note rising from below 4.3% to above 4.47%, the highest level in over four months, while the 2-year yield also gained but by a smaller amount.
The US dollar index also rose more than 1.7%, as the greenback strengthened by 2% against the euro to a six-month high.
Rises in Treasury yields were, said UBS analyst, "in anticipation of higher nominal GDP growth and higher fiscal deficits".
Deficit spending concerns will rise especially if Republicans secure the House of Representatives, said Adam Turnquist, chief technical strategist for LPL Financial.
The rally in the greenback was due to expectations that Trump's policies will be inflationary, with Fed funds futures dialing back interest rate cut expectations from five to four quarter-point cuts by the end of 2025.
Gold, silver and platinum are the most negatively correlated commodities to the greenback.
Trump's policies may not be limited to strengthening the dollar against foreign currencies, "but will extend to deepening the state of uncertainty about the future of the global economy, which will leave gold facing factors with opposing effects", said Samer Hasn, analyst at XS.com.
As for Ukraine, Trump has also previously spoken of his intention to stop the war there upon his return, while Ukrainian President Volodymyr Zelensky has said that this could be achieved by forcing Ukraine to negotiate by cutting off aid to it.
Trump’s previous talk of an intention to stop the raging wars may raise optimism, but I do not rule out that either Netanyahu or Zelensky will exacerbate the conflicts they are waging to drag the United States into those wars.