Citi Group expects gold to decline after the U.S. elections if Trump wins.

On Tuesday, Citigroup, the American financial company, published a memo detailing the views and expectations of its analysts regarding gold price performance following the U.S. elections. According to the memo, as reported by The Wall Street Journal, Citigroup analysts believe that gold may face significant selling waves after the U.S. elections if former Republican President Donald Trump wins.

Citigroup clarified that these expectations stem from the fact that Trump's victory supports the performance of the U.S. stock market more than gold, noting that Trump's proposed corporate tax cuts are likely to bolster the stock market at the expense of gold. This, in turn, could lead to significant sell-offs in gold as investors shift their money into the stock market.

Citigroup analysts referenced the substantial decline gold experienced, approximately 8.2%, during the month following Trump's victory in 2016. They also noted that as many turned to gold as a safe haven hedge against uncertainty before the elections, gold typically faces significant challenges in the weeks following most U.S. elections since the 1980s.

However, Citigroup experts pointed out in the memo that they still lean towards buying dips in gold, explaining that the gold bull market remains intact, as they anticipate gold prices to rise to $3,000 per ounce over the next six months due to a weak U.S. labor market and increased demand for gold-backed exchange-traded funds.