Gold’s price tumbled as Donald Trump’s presidential campaign was rocked by accusations of fraud.
The Federal Reserve on Thursday announced it would cut its key interest rate, a move that will likely spark panic among gold traders.
Trump’s campaign has denied the accusations, and gold futures were down nearly 5 percent in early trading Thursday morning.
The Trump campaign also dismissed the Fed’s announcement as a “political move” and a “stunt.”
The price of gold fell $7.20, or 2.1 percent, to $1,259.99 an ounce in mid-afternoon trading.
The U.S. government’s central bank cut its benchmark rate by 0.25 percentage points to 0.75 percent.
Gold, which is traded in a variety of currencies, is considered a safe haven for investors who have been wary of the Trump presidency.
Trump has vowed to bring back “clean energy” and lower energy costs, but critics of his policies have warned that he is undermining the global financial system.
The campaign also has called for an end to U.N. sanctions on Russia, a U.K. referendum on the European Union, and other trade disputes.
The Fed’s decision on Thursday comes as gold has been trending higher, with prices on Thursday moving from near a four-year high in early December.
The S&P 500 index of stocks has climbed nearly 4 percent this year, according to data compiled by Bloomberg.
Gold was trading up 2.4 percent in December.