Gold Prices Slide as Trump’s Victory Weighs on Bullion
Gold prices saw further declines in Asian trading on Monday, extending losses from the previous week. The drop followed a surge in risk appetite after Donald Trump’s victory in the 2024 U.S. presidential election.
Dollar Strength and Inflation Concerns Pressure Gold
Spot gold fell 0.5% to $2,670.69 an ounce, while December gold futures decreased 0.1% to $2,677.50 an ounce by 23:35 ET. The U.S. dollar remained strong, adding pressure on gold prices, which are often inversely correlated with the greenback. Investor attention is now focused on U.S. inflation data and Federal Reserve cues expected later this week, which could signal the direction of long-term interest rates. The prospect of prolonged high rates under Trump’s administration has further weighed on gold.
Trump’s Economic Policies and Gold's Decline
Trump’s victory has cleared a major point of market uncertainty, reducing gold's appeal as a safe-haven asset. Market participants are now bracing for potentially more inflationary policies, which could keep interest rates elevated for the foreseeable future. This outlook has dampened gold’s appeal, even as the Fed recently cut interest rates by 25 basis points.
Mixed Trends in Precious Metals
While gold faced downward pressure, other precious metals saw mixed performance. Platinum rose 0.4% to $983.05 an ounce, while silver fell 0.5% to $31.293 an ounce.
Copper Prices Stabilize Amid Underwhelming China Stimulus
Copper prices steadied after disappointing fiscal measures from China, the world's largest copper importer. Copper futures saw modest gains on the London Metal Exchange but remained vulnerable due to investor concerns over the effectiveness of China’s stimulus plan.
For further reading, you can check out the following sources:
- Gold prices drop on Trump’s win as risk appetite rises
- U.S. dollar strengthens, affecting commodity markets
- China’s economic measures fail to meet investor expectation


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