Gold prices fell on Friday but remained near the $2,700 level as traders weighed the impact of Donald Trump's presidency and its implications for the outlook for U.S. interest rates.
Spot gold fell 0.4% to $2,697.19 an ounce by 0251 GMT and was heading for a weekly loss. However, prices rose more than 1% in the last session, rebounding by more than 3 weeks.
US gold futures held steady at $2,704.50 as the US dollar index poised for a small weekly gain following Trump's election victory.
A stronger dollar makes bullion more expensive for foreign buyers. [USD/]
Gold prices are slightly under pressure due to market uncertainty over U.S. political developments, said Kyle Rodda, financial markets analyst at Capital.com.
The long-term uptrend remains strong for gold, supported by expected rate cuts and current geopolitical tensions, Rodda added.
Gold is considered a hedge against uncertainty and tends to thrive in a low interest rate environment.
Following its two-day meeting Thursday, the Federal Reserve cut interest rates by 25 basis points, as expected, but indicated it would take a cautious and measured approach to any reduction. future interest rates.
Operators now estimate a 71% probability of a further cut of 25 basis points in December, which could be the third of the year.
In the long term, gold still looks higher, but in the short term, if prices fall to $2,643, the next support levels will be between $2,620 and $2,520, said Brian Lan, managing director of the broker GoldSilver Central, based in Singapore.
Separately, the World Gold Council (WGC) reported that physical gold exchange-traded funds (ETFs) recorded inflows for the sixth consecutive month in October.
Elsewhere, Beijing will wrap up a key five-day meeting later today, which investors are watching closely for more details on stimulus measures.
Spot silver fell 0.8% to $31.75 an ounce, platinum fell 0.2% to $994.80 and palladium lost 0.21% to $1,022.36 .
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