Investing.com– Gold prices fell in Asian trade on Monday (NASDAQ:), extending losses from last week as risk appetite remained mostly upbeat following Donald Trump’s victory in the 2024 presidential election.
The yellow metal was also pressured by strength in the dollar, as the greenback steadied before more cues on U.S. inflation and the Federal Reserve this week. An outlook for higher rates in the long term, under a Trump presidency, also weighed on bullion prices.
fell 0.5% to $2,670.69 an ounce, while expiring in December fell 0.% to $2,677.50 an ounce by 23:35 ET (04:35 GMT).
Gold nurses tumble from record highs
Gold prices were nursing a tumble from record highs over the past week, with a bulk of losses coming after Trump’s election victory.
His victory cleared a main point of uncertainty for markets, which had also been a major source of safe haven demand for gold.
Trump is expected to enact more expansionary policies in his second term, heralding a potential increase in inflation and keeping interest rates relatively high in the long term.
This notion saw gold take little relief from the Fed last week, and flagging a cautious approach to further easing.
Focus this week is on U.S. consumer price index inflation, set to offer more cues on whether inflation is cooling in line with the Fed’s expectations.
A slew of Fed officials are also set to speak in the week, offering up more cues on monetary policy.
Gold saw little safe haven demand even as tensions between Ukraine and Russia appeared to have ramped up after Ukraine launched a major drone attack on Moscow.
Other precious metals were mixed on Monday. rose 0.4% to $983.05 an ounce, while fell 0.5% to $31.293 an ounce.
Copper steadies as China stimulus underwhelms
Among industrial metals, copper prices nursed steep losses as new fiscal measures from China, the world’s biggest copper importer, largely underwhelmed.
Benchmark on the London Metal Exchange rose 0.1% to $9,450.0 a ton, while December fell 0.1% to $4.3037 a pound.
China’s National People’s Congress approved about 10 trillion yuan ($1.4 trillion) in new debt measures, aimed at aiding local governments.
But the move disappointed investors hoping for more targeted fiscal stimulus, especially as data over the weekend showed Chinese deflation worsened in October.
Analysts at ANZ said Beijing was likely holding off on more fiscal measures to see just how U.S. policy towards the country will change under a Trump presidency.
Trump has vowed to impose steep trade tariffs against China.