Gold prices fell 2.5% today, Monday, by 1854 GMT, under the influence of the continued rise of the dollar and the wider impact of Donald Trump‘s victory for the presidency of the United States on fiscal policy and the lowering of interest rates.
Gold in spot transactions fell to $2,617.96 an ounce, while US gold futures contracts fell 2.9%, registering $2,617.70 at settlement.
The dollar index rose 0.5% to its highest level since early July, making gold less attractive to holders of other currencies. Last week, the index jumped more than 1.5% to 105.44 after the announcement of Trump’s election victory.
Gold recorded its worst weekly performance in more than 5 months after Trump was elected president for a second term last Tuesday. His victory created new uncertainty for the Federal Reserve (US central bank) as it continues to explore reducing borrowing costs at a time when inflation is approaching the 2% target level.
The US Federal Reserve cut interest rates by a quarter of a percentage point last week to a range between 4.5 and 4.75%.
The FedWatch tool showed traders now expect a 65% chance the US central bank will cut interest rates by 25 basis points in December, compared to an 80% chance before Trump won.
Fed officials, including Chairman Jerome Powell, are expected to speak this week, while US consumer and producer price index data, weekly jobless claims, and sales sales are also expected to be released this week.
As for other metals, silver in spot transactions fell 2.2% to $30.60 an ounce, platinum fell 0.7% to $961.55, and palladium fell 0.9% to $979.96.
2024-11-11 20:46:00
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