Gold ETF Hit With $1 Billion Outflow: Investors Dump Safe Haven Asset After Trump Win

The SPDR Gold Trust GLD witnessed its biggest weekly outflow in over two years driven by a post-election shift in sentiment following Donald Trump's election victory.

What Happened: The world's largest physically backed gold ETF just saw an outflow of $1 billion between Nov. 4 and Nov. 8, according to data from ETF.com.

Investors appear to be cashing out of the safe-haven asset, banking on a strong dollar under a second Trump term.

The trend comes after gold hit a record high of $2,789 per ounce at the end of October — a level that marked a 35% year-to-date gain. That’s the metal's strongest performance since 1979.

The rally pulled back in recent days as gold prices fell 6%. November is now shaping up to be the worst month for gold since September 2023.

See Also: Bond ETFs Slide As Fed Cuts Clash With Trump’s Fiscal Agenda

Why It Matters: Last week's $1 billion outflow from the SPDR Gold Trust is the largest weekly outflow since July 2022. Investors are evidently taking profits and reallocating funds amid shifting market expectations.

Analysts suggest that gold's decline is largely a reaction to Trump's economic policies. Trump's promises of tax cuts for the wealthy and deregulation have fueled expectations for faster economic growth. It’s worth noting that overall economic growth never hit 3% a year when Trump was president.

Trump also pitched tariff plans as a boost to domestic manufacturing and reduce dependency on foreign goods. Economists warn that they’ll worsen inflation.

Bitcoin BTC/USD, often touted as “digital gold,” has instead seen strong gains in recent days, hitting fresh record highs. Some analysts, like longtime gold advocate Peter Schiff, dismiss the cryptocurrency's rise as speculative.

"Bitcoin's rise has nothing to do with its supposed fundamentals," Schiff wrote on social media X.

"The U.S. dollar is rising, gold is falling, and the U.S. economy is believed to be on the verge of a boom, with debt-to-GDP plunging, reducing the need for U.S. dollar alternatives. It's a Trump-inspired mania."

Read Next:

• Trump Trade Sparks Biggest Financial Stock Inflows In 2 Years

Image: Shutterstock