Gold Futures Stabilize After Trump Win Sparked Selloff
Gold futures are broadly flat at $2,573.00 a troy ounce, stabilizing after more than a week of losses. Futures are down 4.9% on week. Gold has been weighed down by a rising U.S. dollar, retreating from an all-time high of $2,801.80/oz set in late October.
The dollar rally was ignited by Donald Trump's victory in the U.S. presidential elections, say BMI analysts. The surge in dollar strength, coupled with uncertainty over the pace of Federal Reserve interest-rate cuts after Trump's win acted as a headwind to gold, BMI says. The Fed is now unlikely to ease monetary policy as much as the market had hoped for given Trump's inflationary policies, adding further pressure to gold prices. Higher interest rates typically dampen the appeal of non-interest-bearing bullion. ( \n This email address is being protected from spambots. You need JavaScript enabled to view it. )
Source : Dow Jones Newswires