Investing.com — Gold prices fell on Friday under pressure from the dollar, although expectations for further rate cuts helped keep the downward momentum in check.
settled down 0.8% to $2,684.20 per ounce, while the December expiration at 11:59.ET (1659 GMT) fell 0.5% to $2,691.90 per ounce.
The yellow metal was battered by a sharp rally in the dollar this week after Trump won the 2024 presidential election. But the dollar retreated from four-month highs on Thursday after the Fed cut rates and signaled plans for more easing.
Gold leads for weekly loss after post-Trump beating
Spot gold should lose almost 2% this week after falling sharply following Trump’s victory.
The decline was partly caused by a rise in US Treasury yields as markets expected Trump to implement more inflationary policies in the long term.
But Trump’s victory also brought a swift end to the US election, removing a key point of uncertainty for markets and sparking a rally in risk-driven assets. Gold had soared to record highs in the run-up to the election, with spot prices approaching $2,800 an ounce.
Fed interest rate cut offers gold some relief
The yellow metal saw some relief after the Fed on Thursday, as expected.
Chairman Jerome Powell indicated that the US economy remains resilient and that the Fed will further ease monetary policy, albeit cautiously.
Such a scenario provides some short-term relief for gold and other non-performing assets. But markets now became uncertain about the long-term prospects for interest rates, especially in light of the Trump presidency.
Other precious metals fell on Friday and also suffered weekly losses. fell 2.1% to $978.40 per ounce, while the price fell 1.4% to $31,420 per ounce.
Copper falls, China NPC in focus
Among industrial metals, copper prices fell on Friday but were expected to see some gains this week as traders looked for more signals of fiscal stimulus from top importer China.
The benchmark on the London Metal Exchange fell 2.5% to $9,441.00 per tonne, while December fell 2.7% to $4.3110 per pound.
China’s National People’s Congress will outline plans for more budget spending at the end of a four-day meeting on Friday. The measures are expected to be largely aimed at supporting economic growth as the country struggles with persistent deflation and a slowdown in the real estate market.
(Ambar Warrick contributed to this article.)
