Investing.com — Gold prices fell on Monday, extending last week’s losses, as the dollar remained strong and risk appetite remained healthy following Donald Trump’s victory in the 2024 presidential election.
At 3:00 PM ET (2000 GMT), the price was down 2.4% at $2,619.89 per ounce, while down 2.5% to $2,626.45 per ounce.
Gold falls from record highs
Gold prices have been falling from record highs over the past week, with most of the losses coming after Trump’s election victory.
His victory ended a major point of uncertainty for the markets, which had also been a major source of safe-haven demand for gold.
Trump is expected to pursue more expansionary policies in his second term, heralding a potential rise in inflation and keeping interest rates relatively high in the long term.
This resulted in a strengthening of the dollar even after the Fed last week, marking a cautious approach to further easing.
The focus this week is on the latest US inflation data, with October’s consumer price index inflation expected to provide further clues as to whether inflation is cooling, in line with Fed expectations.
A slew of Fed officials will also speak this week and provide more guidance on monetary policy.
Other precious metals were mixed in Monday (NASDAQ:). fell 1.1% to $968.20 per ounce, while the price fell 2.2% to $30.747 per ounce.
Copper is weakening as Chinese stimulus measures leave much to be desired
Among industrial metals, copper prices saw steep losses as new fiscal measures from China, the world’s largest copper importer, largely failed to materialize.
The benchmark on the London Metal Exchange fell 1.4% to $9,305.00 a tonne, while December fell 1.6% to $4.2385 a pound.
China’s National People’s Congress has approved about 10 trillion yuan ($1.4 trillion) in new debt measures aimed at helping local governments.
But the move disappointed investors hoping for more targeted fiscal stimulus, especially as data over the weekend showed China’s deflation worsened in October.
“Following Trump’s victory in the presidential election, markets were hoping for a larger-than-expected stimulus,” ING analysts said in a note.
“However, our Chinese economist believes there will be more to come once policymakers have more clarity about what a new Trump administration will do next year. Chinese policies pose an upside risk to our industrial metals prospects, depending on the strength and speed of developments. rollout of measures.”
(Ambar Warrick contributed to this article.)
