Gold prices fall as Trump wins
Gold prices fall as Trump wins
2024-11-06 03:17
Shafaq News/ Gold prices hit their lowest level in nearly three weeks on Wednesday, as the dollar maintained its strength with the rise of so-called “Trump policy betting trades”, while investors are also closely awaiting the upcoming meeting of the US Federal Reserve on monetary policy.
Republican Party candidate Donald Trump has secured the required number of electoral college votes to officially become the 47th President of the United States, marking his unexpected return to the political arena after a four-year absence from the presidency.
The dollar hit a four-month high, making holding the yellow metal more expensive for buyers holding other currencies.
“Gold is being dragged down by the continued strength of the dollar and concerns that the US Federal Reserve may slow the pace of rate cuts due to concerns that inflation may rise again,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold is considered a hedge against inflation, and higher interest rates reduce the appeal of the non-yielding precious metal.
The Federal Reserve’s two-day policy meeting is due to end on Thursday, with markets widely expecting the U.S. central bank to cut interest rates by a quarter of a basis point after cutting them by 50 basis points in September.
Spot gold fell 0.8 percent to $2,721.21 an ounce by 0923 GMT, having hit a record high of $2,790.15 on Thursday.
U.S. gold futures fell 0.7 percent to $2,730.20.
As for other precious metals, silver in spot transactions fell 1.4 percent to $32.19 per ounce, platinum fell 1.2 percent to $987.43, and palladium fell 1.4 percent to $1,060.94.
All three metals hit three-week lows.
shafaq.com
