Gold Prices Steady Amid Dollar Rally

Gold prices showed minimal movement in Asian trade on Tuesday following recent declines from record highs. This was attributed to a strengthened dollar amid speculation regarding a possible second Donald Trump presidency.

Impact of Trump's Victory

The improved risk appetite after Trump’s election victory decreased gold's safe-haven appeal, leading to a notable increase in the dollar, which further pressured bullion prices.

Current Prices

• Spot gold decreased by 0.1% to $2,617.64 an ounce.
• Gold futures for December experienced a slight rise of 0.2%, reaching $2,623.70 an ounce by 23:27 ET (04:27 GMT).

Recent Trends in Gold Value

Gold has fallen from nearly $2,800 per ounce over the past two weeks, mainly due to a surge in the dollar as markets anticipate that Trump's inflationary policies may keep interest rates elevated long-term. The dollar has soared to four-month highs, contributing to rising Treasury yields.

Trump's protectionist trade and immigration policies are thought to inflate prices further.

Upcoming Economic Indicators

Attention is drawn to the U.S. consumer price index (CPI) inflation data expected this week, with predictions that inflation remained high in October, potentially influencing interest rate expectations. Additionally, several Federal Reserve officials will speak this week, providing more insights on monetary policy following last week's rate cut of 25 basis points.

Currently, traders anticipate a 66.7% probability for another rate cut in December versus a 33.3% chance that rates will stay the same, according to CME Fedwatch.

Performance of Other Precious Metals

Other precious metals displayed mixed results. Platinum futures decreased by 0.9% to $962.95 an ounce, whereas silver futures edged up 0.1% to $30.645 an ounce.

Industrial Metals: Copper Prices Decline

Copper prices have also dropped on Tuesday, continuing a streak of recent losses. This decline follows a lackluster response to China’s fiscal measures aimed at supporting local economies.

• Benchmark copper futures on the London Metal Exchange fell by 0.2% to $9,290.0 per ton.
• December copper futures dropped by 0.6%, settling at $4.220 per pound.

Despite the National People's Congress in China approving 10 trillion yuan ($1.4 trillion) in new debt measures, the market reacted negatively due to the absence of direct support targeting personal consumption and the property market, particularly amid heightened trade tariffs from a potential Trump administration.

Looking ahead, analysts at JPMorgan predict that China may announce more focused fiscal actions in the near future, as the government assesses the implications of Trump's election.