Gold Futures Slip, Set to End Week Down on Higher Dollar
Gold continues to fall, on course to end the week lower following Donald Trump's election win. Futures fall 0.3% to $2,696.50 a troy ounce.
The precious metal mounted a small recovery on Thursday's session, but remains down 1.9% on-week. This reflects reduced uncertainty surrounding the U.S. election, BMI analysts say in a note. Trump's resounding victory in the U.S. election sent the dollar higher, pressuring gold prices, BMI says. At the same time, Trump's proposed policies--including tariffs and stricter immigration controls--are inflationary in nature. This has softened expectations for sizeable Federal Reserve cuts to the U.S. interest rate, BMI says. This has further damped the appeal of gold. Higher interest rates are typically a headwind for non-interest bearing bullion.
Source : Dow Jones Newswires
