Gold prices have slipped to a one-month low following the US Presidential election.
The price of the precious metal declined 2.5% on Monday, weighed down by the greenback’s continued rise and expectations of interest rate cuts, in a week characterised by the aftermath of the Republican Party’s victory.
“Gold has succumbed to the purple patch of the US dollar in the aftermath of the election, Tim Waterer, Chief Market Analyst at KCM Trade told Reuters. “Trump’s policies appear to be a boon for the dollar, which, combined with potential inflationary pressures, could slow the Fed’s rate-cutting trajectory in 2025.”
On Tuesday, gold prices were down 0.58% at $2,604 and the yellow metal is currently trading below the 50-SMA at $2,648 on the day chart. Overall, gold is trading nearly 7% below October’s record-high price.
The gold prices in the UAE today (November 12) are as follows:
- 24 Carat – Dh317.00
- 22 Carat – Dh293.50
- 21 Carat – Dh284.00
- 18 Carat – Dh243.50
Nonetheless, the commodity’s price is still significantly high compared to previous years. “Despite the recent sell-off, gold is still up 25% year-to-date as geopolitical tensions, rate-cut optimism, global uncertainty, and central bank purchases contributed to its rally,” said Vijay Valecha, Chief Investment Officer, Century Financial.
Investors’ attention is now focused on Wednesday’s Core CPI report, which is expected to influence the Fed’s trajectory and impact the likelihood of further interest rate cuts.
