Gold experiences the largest single-day decline in nearly half a year, is the safe-haven trend over? Pay attention to the Federal Reserve's announcement of the Interest Rate decision at 3 a.m.

After the election of Republican presidential candidate Trump in the United States, the US dollar index hit a four-month high, while the price of gold fell to a three-week low. After the election results were announced, the market followed the FOMC meeting decision. The Fed will announce the interest rate decision at 3:00 am Taiwan time on the 8th. It is widely expected that the interest rate will be reduced by 1 basis point this time. After Trump's election as President of the United States, investors have been buying the US dollar, while the gold price, which reached new highs before the election, fell. The spot gold price fell 2.8% in a single day on Wednesday, falling to $2,643.77, the lowest since October 15 and the largest single-day drop in nearly six months. On Thursday, it stabilized and reported $2,663, a 0.16% rise for the day. StoneX's Asia and EMEA market analysis director Rhona O'Connell analyzed that the market originally expected the election results to be controversial, but Trump's clear victory eliminated uncertainty and reduced risk factors. In addition, Trump's victory made the US dollar rise strongly, which led to the fall in the price of gold. Investors expect that after Trump takes office, the US dollar will be boosted because Trump is expected to propose new tariff policies that may trigger a surge in inflation, causing the Fed to pause its loose cycle. After Trump's victory, the US dollar index hit a four-month high and peaked at 105.45 on Wednesday, and is now at 104.76, making gold priced in US dollars more expensive for non-US buyers. After the election results were announced, the market followed the FOMC meeting decision. The Fed will announce the interest rate decision at 3:00 am Taiwan time on the 8th. After cutting interest rates by 2 basis points in September, it is widely expected that the interest rate will be reduced by 1 basis point this time. FedWatch data shows that the current market expectation is a 97.4% probability of a 1 basis point rate cut. Ole Hansen, head of commodity strategy at Saxo Bank, said that after Trump launched new tariffs, the risk of inflation rise may slow down the pace of US interest rate cuts. Interest rate cuts may still occur this week, but the post-meeting statement will be carefully studied by the market to see if there are signs of a pause in interest rate cuts. Asian currencies face dumping risks. Bloomberg reported that since Trump's victory, Asian currencies have faced dumping, and the yen has depreciated to the psychological level of 1 USD to 155 JPY. The onshore renminbi is approaching its 16-year low, making Asian forex stability a focus once again. Some strategists warn that if the United States imposes a new round of tariffs on its trading partners, it may trigger a competitive devaluation of Asian currencies. Asian currencies are preparing to face more depreciation risks this week, as the Fed will announce its interest rate decision on Thursday, and the Standing Committee of the National People's Congress of China will end its meeting on Friday. If the Fed hints at slowing down the pace of interest rate cuts or China's fiscal stimulus policy fails to satisfy investors, Asian currencies may come under pressure. Shoki Omori, chief trading strategist at SuMi TRUST, said that there is no opportunity for Asian currency traders to rest this week. Trump's victory has pushed the US dollar higher, and now investors need to guard against potential intervention risks, especially if the Fed or the National People's Congress of China takes unexpected measures. Traders will carefully analyze the remarks of Fed decision-makers to judge the pace of future interest rate cuts. Any unexpected changes may shake the US dollar and affect regional currencies. As the permanent body of the highest national power, the Standing Committee of the National People's Congress of China is expected to announce more stimulus measures after this week's meeting. However, if it fails to meet market expectations, traders may weigh the impact of new US tariffs on China, leading to a weakening of the renminbi.