WASHINGTON (dpa-AFX) - Gold prices fell for a second straight session on Monday as the dollar held firm near last week's four-month peak versus major peers on investor optimism around Donald Trump's presidential victory.
Spot gold dipped half a percent to $2,671.44 per ounce, while U.S. gold futures were down 0.6 percent at $2,677.50.
Trump's re-election boosted the dollar and Treasury yields, making non-yielding assets like gold less appealing to investors.
Analysts predict Trump's re-election may favor corporates through deregulation, mergers and acquisitions and proposed tax cuts, but policies such as increased tariffs could result in an uptick in inflation and complicate the Federal Reserve's interest-rate plans.
Federal Reserve Bank of Minneapolis President Neel Kashkari indicated at the weekend that tariffs would hurt long-term inflation if global trade partners were to strike back.
According to CME Fedwatch, traders currently bet on a 65.9 percent chance for a 25-basis point rate cut in December, and a 34.1 percent chance that rates will remain unchanged.
In economic releases, U.S. reports on consumer and producer prices, retail sales and industrial production due later in the week may provide further insights into the health of the world's largest economy as the Presidency and Senate falls into Republican hands, presenting a clear path for Trump to enact any major policy changes.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
