Gold Futures Fall After U.S. Dollar Surges on Trump Victory
Gold futures fall 0.4% to $2,665.90 a troy ounce. The precious metal closed 2.8% lower in Wednesday's session, weighed by a rising U.S. dollar in the wake of Donald Trump's victory in the U.S. presidential election.
A stronger dollar might act as a headwind for gold, but this could be offset by safe-haven demand given the geopolitical uncertainty that could accompany another Trump presidency, ING analysts say. Rising trade friction from Trump's proposed policies, including tariffs and stricter immigration controls, could also increase safe-haven appeal, ING analysts say in a note. That said, the policies are inflationary in nature and could limit interest rate cuts from the Federal Reserve. A stronger dollar and tighter monetary policy could provide headwinds to both gold and industrial metals, ING adds.
Source : Dow Jones Newswires
