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.
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