GOLD prices struggled for momentum on Thursday (Nov 7), as US dollar firmed after Donald Trump’s election victory, while investors shifted focus to the Federal Reserve’s upcoming rate cut decision.
Spot gold was little changed at US$2,663.02 per ounce, as at 0018 GMT. It hit a record high of US$2,790.15 last week and has lost nearly US$130 since then.
US gold futures edged 0.2 per cent lower to US$2,670.40.
Bullion slipped to over three-week low in previous session, as investors piled into the US dollar after Republican Donald Trump was elected US president.
The US dollar index hit a four-month high in the last session, making bullion more expensive for overseas buyers.
Trump beat Democrat Vice-President Kamala Harris to retake the White House while Republicans also won a US Senate majority.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
With Trump coming back to power Fed rate cuts may slow down, with his policies expected to boost the economy and curb inflation.
Traders await the expected 25-basis-point cut, likely to be announced at the end of the Fed’s two-day meeting later in the day.
Investors will also seek hints on the further Fed’s rate-cut path during Fed chair Powell’s press conference at 1930 GMT.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in low-interest-rate environment.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.39 per cent to 883.46 tonnes on Wednesday.
Overall, metals bore the brunt of global commodity price losses after a US election win by Donald Trump on Wednesday, while oil, gas and agricultural commodity prices recouped some losses.
Spot silver rose 0.2 per cent to US$31.21 per ounce, platinum gained 0.13 per cent to US$987.90 and palladium was down 0.2 per cent to US$1,032.93. REUTERS
