Gold Prices Decline Amid Market Shifts
Gold prices fell in Asian trade on Friday, experiencing minimal relief despite a decline in the dollar following an interest rate cut by the Federal Reserve, while markets also contemplated the implications of a second Donald Trump presidency.
The yellow metal faced pressure from a significant dollar rally this week after Trump’s victory in the 2024 presidential election. However, the dollar decreased from four-month highs on Thursday after the Fed signaled plans for more easing by cutting interest rates.
Current Gold Prices
- Spot gold: $2,695.93 (-0.4%)
- December gold futures: $2,702.80 (-0.1%) as of 23:38 ET (04:38 GMT).
Weekly Performance
Spot gold is on track for a weekly loss of about 1.6%, influenced largely by the dollar and rising Treasury yields as markets expect Trump to promote inflationary policies.
Trump’s election victory also eliminated uncertainty from the U.S. elections, sparking a rally in risk-driven assets. Gold price peaked at nearly $2,800 an ounce prior to the elections.
Fed Rate Cut Impact
The Fed's interest rate cut of 25 basis points on Thursday provided some respite for gold as Chair Jerome Powell noted resilience in the U.S. economy while suggesting cautious monetary policy easing moving forward. This raises uncertainty over the long-term interest rate outlook under a Trump presidency.
Precious Metals Performance
Other precious metals saw declines on Friday, with:
– Platinum futures: $997.85 (-0.6%)
– Silver futures: $31.823 (-0.1%)
Industrial Metals Overview
Copper prices also dipped on Friday but were on track for weekly gains as traders anticipated fiscal stimulus cues from China.
- Benchmark copper futures: $9,614.0/ton (-0.7%)
- December copper futures: $4.3970/pound (-0.9%)
China’s National People’s Congress is anticipated to announce increased fiscal spending plans after meeting for four days, aimed at boosting economic growth amid ongoing deflation and a slowing property market.
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