Gold prices declined in Asian markets on Monday, continuing last week’s losses as investor confidence remained high after Donald Trump’s win in the 2024 presidential election.
The precious metal also faced downward pressure from a strong dollar, which remained steady ahead of upcoming U.S. inflation data and Federal Reserve insights. Expectations for higher interest rates under Trump’s presidency further weighed on gold prices.
Spot gold dipped 0.5% to $2,670.69 per ounce, while December gold futures decreased 0.5% to $2,677.50 an ounce by 23:35 ET (04:35 GMT).
Gold prices are struggling after hitting record highs last week, with most of the drop occurring post-election. Trump’s victory eased a significant uncertainty in the markets that had driven safe-haven demand for gold.
Trump’s anticipated expansionary policies may lead to increased inflation and sustained high interest rates. Consequently, gold saw limited support despite last week’s 25-basis-point Fed rate cut, with the Fed signaling a cautious approach to further easing.
This week’s focus is on the U.S. consumer price index, which could indicate if inflation is aligning with the Fed’s goals. Additionally, several Fed officials are scheduled to speak, potentially offering further insights into monetary policy.
Gold’s safe-haven appeal remained weak, even as tensions between Ukraine and Russia escalated after Ukraine’s significant drone attack on Moscow.
Other precious metals showed mixed results on Monday: Platinum futures rose 0.4% to $983.05 per ounce, while silver futures fell 0.5% to $31.293 per ounce.
Copper prices steadied as China’s stimulus measures disappointed
In industrial metals, copper prices struggled with losses as recent fiscal measures in China, the largest copper importer, fell short of market expectations.
Benchmark copper futures on the London Metal Exchange increased 0.1% to $9,450.0 per ton, while December copper futures decreased 0.1% to $4.3037 per pound.
China’s National People’s Congress approved approximately 10 trillion yuan ($1.4 trillion) in new debt initiatives to support local governments. However, investors were hoping for more specific fiscal stimulus, especially given worsening deflation in China in October.
Analysts at ANZ suggest Beijing may be holding off on further stimulus to assess potential shifts in U.S. policy towards China under Trump’s presidency. Trump has pledged to impose significant trade tariffs on China.
