iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold Struggles as Dollar Rises, Fed in Focus

7 Nov 2024 , 10:02 AM

As the dollar strengthened following Donald Trump’s presidential triumph and investors turned their attention to the Federal Reserve’s impending rate-cut decision, gold prices failed to gain traction on Thursday.

Spot gold was little altered at $2,663.02 per ounce. It has dropped almost $130 since reaching a record high of $2,790.15 last week. The price of U.S. gold futures dropped 0.2% to $2,670.40.

Following the election of Republican Donald Trump as U.S. president, investors flocked to the U.S. dollar, causing gold to drop to a level not seen in almost three weeks. In the most recent session, the dollar index reached a four-month high, raising the price of bullion for buyers from abroad.

Republicans won a majority in the U.S. Senate, and Trump defeated Democrat Kamala Harris to recapture the White House. The Fed may slow rate decreases now that Trump is back in office, as his policies are anticipated to stimulate the economy and reduce inflation.

Traders wait for the anticipated 25 basis point cut, which is probably going to be revealed later in the day at the conclusion of the Fed’s two-day meeting. During Fed Chair Powell’s news conference at 1930 GMT, investors will also look for clues about the Fed’s future rate-cut trajectory.

Bullion tends to flourish in low-interest-rate environments and is regarded as a hedge against geopolitical and economic risks.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • Donald Trump
  • Federal reserve
  • gold
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.