Gold prices continue to fall at the start of the week

Gold futures for the first of the month fell on Monday, November 11, 2024, by 2.8% to $2,611.20 per ounce. This is the largest daily drop since June 2021, according to FactSet data. That’s three out of four trading sessions in which gold fell. And this comes as the US dollar index continues to rise. This index is up 0.3%.

Capital outflows from gold futures were seen last week, according to data from JPMorgan Global Commodities Research. Which is different from what analysts predicted. “Gold’s rapid decline after the election went against our strategists’ expectations. But they believe the sale is a misstep and not a radical change,” the company says.

The dollar’s rise reflects economic optimism fueled by Donald Trump’s victory in the presidential election, says Rania Gule of XS.com.

Thus, expansionary policy plans have strengthened the greenback. While steering investors away from the traditional safe haven of precious metals. This is what Ms. Gule explains in a note, adding that gold could continue to fall.

All eyes are now on inflation data, including the release of the Consumer Price Index tomorrow, Wednesday, and the Federal Reserve’s comments on easing monetary policy, Gule said. Higher interest rates to curb inflation generally reduce the attractiveness of non-interest-bearing bullion.