Why does Trump's coming to power cause gold to plummet?

After the election results were announced yesterday, the US dollar index first experienced a surge, so what is the relationship between the US dollar index and gold?

The US dollar index is usually negatively correlated with gold, that is, when the US dollar index strengthens, the price of gold tends to fall, and vice versa. Because gold is denominated in US dollars, the appreciation of the US dollar makes gold more expensive for investors holding other currencies, thereby reducing the demand for gold.

So why will the US dollar strengthen if Trump is elected?

The reason is that Trump's policy propositions, such as tax cuts and increased tariffs, may increase fiscal deficits and trigger inflation expectations, and these factors have jointly promoted the rise of the US dollar.

Of course, in addition to the impact of the US dollar index, it is also related to geopolitical stability. After all, Trump's election manifesto has always emphasized that he will stop the war after taking office. Once the situation stabilizes, everyone's demand for safe-haven assets will naturally decrease, which will also put downward pressure on gold prices.