Gold drops over 2% as dollar strengthens; investors await Fed policy cues
Gold prices slipped more than 2% on Monday, weighed down by the greenback's continued rise and the broader implications of Donald Trump's victory on fiscal policy and interest rate cuts.
Spot gold fell 2.3% to $2,666.48 per ounce, as of 10:12 a.m. ET (1511 GMT). U.S. gold futures fell 2.42% to $2,629.40.
With the dollar index rising 0.5% to its highest level since early July, gold became less attractive to non-dollar buyers. Last week, the index surged more than 1.5% to 105.44 following the announcement of Trump's victory in the U.S. presidential election.
The Fed cut the benchmark rate a quarter of a percentage point last week to a range between 4.5% to 4.75%.
Traders now see a 65% chance of a 25 basis-point Fed rate cut in December, versus around 80% chance before Trump's victory.
Meanwhile, Fed officials, including Chair Jerome Powell, are scheduled to speak this week, while U.S. consumer and producer price index data, weekly jobless claims and retail sales figures are also due this week.
Spot silver fell 2.3% to $30.58 per ounce.
Source: Reuters
