The bullion market highly receptive to the results of the US elections as the Republican candidate Donald Trump is crowning as the 45th president of the United States on Wednesday, crushing the potentials for a victory by Democrat Hillary Clinton.

Consequently, gold prices have surged to hit the 7-week’s highs at 1337.49 levels but could not sustain to drop back the current 1301 levels. For now, the price of the yellow metal was up by 2% at around the $1,300-level, pulling back from an earlier advance as much as of 4.7%.

There's more uncertainty in his platform and the direction that his policy may aim, so there may be more volatility with risk assets and over the short-term you may have investors flock to gold.

The U.S. dollar sank and stock markets smashed into reverse in wild trade as investors faced the real possibility of a shock win by Trump that could upend the global political order. While sovereign bonds shot higher while the Mexican peso went into near freefall.

U.S. gold futures for December delivery was last up 3.3 pct at $1,317.30 an ounce, after earlier hitting $1,324.30.

In our opinion, the risks of another leg lower in gold prices increased at the end of October as recent upbeat US data will likely keep the December hike on track and safe haven demand at bay. Furthermore, the last week of October delivered positive surprises in the G3 October preliminary PMIs for both manufacturing and services components. Looking forward to the end of this year, we have already ridden out an increase in gold prices reflecting Trump’s victory.

Safe-haven assets pulled back from their strongest levels of the session on Wednesday after the elected U.S. President Donald Trump gave a victory speech in which he said he would seek common ground and not hostility, contrasting the heated words he has become famous for at campaign rallies.