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Jewellers calculate the cost of Trump victory as gold price spikes and dollar weakens

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NEW YORK, NY - NOVEMBER 09: Republican president-elect Donald Trump delivers his acceptance speech during his election night event at the New York Hilton Midtown in the early morning hours of November 9, 2016 in New York City. Donald Trump defeated Democratic presidential nominee Hillary Clinton to become the 45th president of the United States. (Photo by Spencer Platt/Getty Images)

The gold price spiked and the dollar weakened in the hours following Donald Trump’s victory in the US presidential race.

The net result of the opposite directions was that gold will cost roughly the same today as it did yesterday for British buyers.

The price of gold soared by the most since the Brexit vote as it became clear Mr Trump was on course for victory and investors searched for safe havens.

The dollar price surged by almost 5% to $1,337.38 an ounce, or £1065 for British buyers.

But the simultaneous weakening of the dollar, and a rebound on world markets this morning, has seen the pound price of gold retreat back to £1044 by 9.30am in London, the same price as two weeks ago.

British jewellers are beginning to spin-up their cash for gold businesses as it becomes cheaper to buy scrap than bullion priced in dollars, according to sources.

The gold price is likely to remain strong, business analysts predict.  Concern over Trump’s approach to free trade “is going to throw the global system into a bit of chaos,” which will support gold prices, Mick Wilkes, chief executive officer of OceanaGold Corp., an Australian producer building a $380 million mine in South Carolina, told Bloomberg News.

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