Gold Prices Fall Amidst Trump’s Victory

Gold prices fell in Asian trade on Monday (NASDAQ:MNDY), extending losses from last week as risk appetite remained upbeat following Donald Trump’s victory in the 2024 presidential election.

The yellow metal was pressured by strength in the dollar, as the greenback steadied before more cues on U.S. inflation and the Federal Reserve this week. An outlook for higher rates in the long term, under a Trump presidency, also weighed on bullion prices.

Spot gold fell 0.5% to $2,670.69 an ounce, while gold futures expiring in December fell 0.% to $2,677.50 an ounce by 23:35 ET (04:35 GMT).

Gold Nurses Tumble from Record Highs

Gold prices were nursing a tumble from record highs over the past week, with many losses coming after Trump’s election victory. His victory cleared a main point of uncertainty for markets, which had also generated major safe haven demand for gold.

Trump is expected to enact more expansionary policies in his second term, potentially increasing inflation and keeping interest rates relatively high long-term. This notion saw gold take little relief from the Fed cutting interest rates by 25 basis points last week and flagging a cautious approach to further easing.

Focus this week is on the U.S. Consumer Price Index inflation, likely to provide more clues on whether inflation is aligning with the Fed’s expectations. A slew of Fed officials are also set to speak this week, offering additional cues on monetary policy.

Gold saw little safe haven demand, even as tensions between Ukraine and Russia appeared to escalate after Ukraine launched a major drone attack on Moscow.

Other precious metals were mixed on Monday. Platinum futures rose 0.4% to $983.05 an ounce, while silver futures fell 0.5% to $31.293 an ounce.

Copper Steadies as China Stimulus Underwhelms

Among industrial metals, copper prices nursed steep losses as new fiscal measures from China, the world’s largest copper importer, largely underwhelmed.

Benchmark copper futures on the London Metal Exchange rose 0.1% to $9,450.0 a ton, while December copper futures fell 0.1% to $4.3037 a pound.

China’s National People’s Congress approved about 10 trillion yuan ($1.4 trillion) in new debt measures, aimed at aiding local governments. However, the move disappointed investors hoping for more targeted fiscal stimulus, especially as data over the weekend showed worsening Chinese deflation in October.

Analysts at ANZ noted that Beijing likely held off on more fiscal measures to see how U.S. policy towards the country will change under a Trump presidency. Trump has vowed to impose steep trade tariffs against China.