Gold prices fell on Monday, extending losses incurred last week as the dollar remains strong and risk appetite is healthy in the wake of Donald Trump’s victory in the 2024 presidential election.
Spot gold fell 1.7% to $2,638.30 an ounce, while gold futures fell 1.8% to $2,645.50 an ounce.
Gold prices have been suffering a decline from record highs over the past week, with the bulk of the losses incurred after Trump’s election victory.
His win removed a major point of uncertainty for markets, which were also a major source of safe-haven demand for gold.
Trump is expected to enact more expansionary policies in his second term, heralding a potential increase in inflation and keeping interest rates relatively high in the long term.
This strengthened the dollar even after the Federal Reserve cut interest rates by 25 basis points last week, indicating a cautious approach to further easing.
The focus this week is on the latest US inflation data, with October’s CPI set to provide further signals on whether inflation is cooling in line with the Fed’s expectations.
A slew of Fed officials are also scheduled to speak this week, offering more signals on monetary policy.
