Gold bullion
Gold prices fell during Thursday’s trading, continuing the losses they suffered after the end of the US elections and Donald Trump’s victory for a second term, which threatens to undermine the Federal Reserve’s efforts to reduce interest rates.
Gold futures prices for December delivery fell by 0.51%, or $13.7, to $2,662.60 per ounce at 09:54 AM Mecca time, and the price for spot delivery fell $2.48 to $2,655.68 per ounce.
Silver contracts for December delivery fell by 0.53% to $31.165 per ounce, as well as the price of spot platinum by 0.88% to $979.26 per ounce.
Donald Trump’s victory in the US presidential elections led to an increase in the value of the dollar against other currencies, which raised the cost of purchasing basic commodities and metals, and this caused a decline in gold’s performance during yesterday’s and today’s sessions.
Although the dollar index – which expresses the value of the US currency against a basket of six major currencies – decreased by 0.18% to 104.9 points, it remains near its highest level in 4 months.
Trump promised to reduce taxes on companies if he wins the elections, and to raise customs duties on imported goods. This may cause inflation to slow or even rise again, and this would undermine the Federal Reserve’s efforts to reduce interest rates.
Today, investors are awaiting the Federal Reserve’s decision on interest rates in light of expectations of a 25 basis point cut, but the greatest focus will be on the press conference of US Federal Reserve Chairman Jerome Powell following the meeting, to know the directions of policymakers regarding the future of borrowing costs.
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