The global political and economic environment was bullish for gold before the election and is even more so in the wake of Trump's victory, said Juan Carlos Artigas, global head of investment research for World Gold Council.
"Gold is the only de-facto currency that cannot be debased by printing more of it, and the only one that does not carry political risk," said Artigas. "There is a reason why gold has outperformed every major currency throughout history."
Global political risk in advanced economies was already high prior to November 8, according to Artigas. The pound sterling has plummeted by more than 15% since the U.K. voted to leave the European Union. Despite a recent uptick, the pound remains under pressure as expectations of a "hard" Brexit linger and there is still no clear road map out of Europe. Last week, the High Court ruled the British government must consult Parliament before triggering Brexit, adding uncertainty even as the government appeals.
Gold (GLD) is up about 19% year to date. Total global investment demand for gold rose 44% in the third quarter to 336 tons, with exchange trade product inflows accounting for 146 tons, as investors continued to build up their strategic allocations. In addition, negative interest rates -- a theme ever present this year -- continued to underpin institutional demand.
Despite a year-on-year decline in the third quarter, central bank buying saw its 23rd consecutive quarter of net purchases. Central banks will continue to be key contributors to demand, according to Artigas.