Why did gold prices drop after Trump's election victory?

First, the certainty of the election results reduced market uncertainty, lowering the demand for safe-haven assets and leading to funds withdrawing from the gold market. Additionally, Trump's tendency to reduce geopolitical intervention may decrease market demand for safe-haven assets.

At the same time, Trump's policy proposals, such as tax cuts and increased tariffs, could trigger inflation expectations, prompting the Federal Reserve to adjust monetary policy, which undermines gold's appeal as a safe-haven asset.

Then there is the pressure on gold prices from the strengthening dollar, as gold is priced in dollars, and a stronger dollar makes gold more expensive for investors holding other currencies.

Finally, funds may flow from gold to risk assets like the stock market, as Trump's victory is seen as beneficial for the U.S. stock market.

These factors combined led to a drop in gold prices following Trump's election.