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Gold, the 2024 Election, and Investor Behavior

Gold often becomes a safe-haven asset during periods of economic instability and political change, and the recent months have confirmed this pattern. By analyzing the flow of funds into gold, we can clearly see the shift in institutional investor behavior and their strategic decisions.

November 2024: The Election and Fund Flows into Gold

November 2024 marked a critical turning point for the gold market as the results of the U.S. presidential election were announced. Trump’s victory led to significant changes in financial markets.

As is often the case, following such an event, gold became increasingly attractive to investors looking to protect their capital from potential instability caused by political shifts.

ETF fund inflows into gold surged by approximately $15 billion, reflecting the growing interest of large institutional investors in gold as a safe asset. This was a key moment when gold started its recovery phase after a period of consolidation.

January 2025: Trump’s Inauguration and Initial Correction

In January, as Trump officially took office, gold, while still attracting demand, experienced a minor correction. This is a typical market behavior following political transitions, where initial interest may subside after the inauguration.

However, despite the correction, institutional investors remained interested in gold. They took the opportunity to reposition, and even amid the correction, some funds actively accumulated positions.

February 2025: A Resurgence of Fund Flows into Gold

From February 2025 onward, investors resumed aggressively accumulating gold, with fund inflows rising once again. This was partly due to geopolitical risks and changes in the economic landscape, especially the instability in global markets, which pushed investors toward assets like gold.

Fund inflows into gold amounted to approximately $20 billion over the next few months, once again reinforcing the trend that investors are viewing gold as a strategic asset in times of market uncertainty.