Investing.com– Gold prices fell in Asian trading on Monday (NASDAQ:), extending last week’s losses as risk appetite remained mostly optimistic following Donald Trump’s victory in the presidential election of 2024.
The yellow metal was also put under pressure by the strength of the dollar, as the greenback stabilized ahead of other clues on US inflation and the Federal Reserve this week. The prospect of higher long-term rates under a Trump presidency also weighed on bullion prices.
The price of gold fell 0.5% to $2,670.69 per ounce, while expiring December fell 0.% to $2,677.50 per ounce at 11:35 p.m. ET (04 :35 GMT).
The price of gold is moving away from its records
The price of gold has moved away from record highs over the past week, with most of the losses coming after Trump’s election victory.
His victory removed a main point of uncertainty for markets, which has also been a major source of safe-haven demand for gold.
Trump is expected to implement more expansionary policies during his second term, leading to a potential increase in inflation and the maintenance of relatively high interest rates in the long term.
In this context, gold received little relief from the Fed ( ) last week, which expressed its caution regarding continued easing.
This week’s focus will be on the US Consumer Price Index, which is expected to provide more guidance on cooling inflation in line with Fed expectations.
Several Fed officials are also expected to speak during the week, offering further clues on monetary policy.
Gold saw weak safe-haven demand as tensions between Ukraine and Russia appear to have escalated after Ukraine launched a drone attack on Moscow.
Other precious metals were mixed on Monday.
Market holds steady as China’s stimulus measures fall short
Among industrial metals, the price of copper suffered significant losses as new tax measures from China, the world’s largest copper importer, largely disappointed.
The benchmark index on the London Metal Exchange rose 0.1% to $9,450.0 per tonne, while December fell 0.1% to $4.3037 per pound.
China’s National People’s Congress has approved around 10 trillion yuan ($1.4 trillion) in new debt measures, aimed at helping local governments.
But the move disappointed investors who were hoping for more targeted fiscal stimulus, especially as data over the weekend showed China’s deflation worsened in October.
ANZ analysts said Beijing was likely waiting to see how US policy towards the country would change under Trump’s presidency before taking further fiscal action.
Mr. Trump has promised to impose high tariffs on China.
