The price of gold has increased slightly this morning after it experienced its worst drop in three years last week. 

Experts suggested that a strengthening dollar and Donald Trump’s election win in the US were behind the drops – which included a 3.1% drop the day after the election. 

Gold benefits when interest rates are low, as it is a non-yielding  asset (meaning it doesn’t pay any interest), and traders have priced in the possibility of fewer cuts to the rate following Trump’s win.  

Additionally, a softer dollar makes bullion less expensive for buyers holding other currencies, but the dollar has soared following the Republican’s victory. 

While last week was bad for gold, it’s worth pointing out that its value has risen by record levels this year – more than 35%. 

This morning, spot gold rose 1% to $2,587.83 per ounce – a small rebound following the drop.