Gold prices still down as Trump reclaims White House

Gold bars

Gold prices are still down today, Nov. 7, extending the losses suffered since Donald Trump clinched US presidential victory in a second term that threatens to undermine the Federal Reserve's efforts to cut interest rates.

Gold futures prices for December delivery dropped 0.51%, or $13.70, to $2,662.60 per ounce at 09:54 am Makkah time, with spot prices also shedding $2.48 to stand at $2,655.68 apiece.

Likewise, silver contracts for December delivery plunged by 0.53% to $31.16 per ounce, in tandem with a 0.88% slump in platinum spot prices to $979.26 an ounce.

With Trump reclaiming the White House, the US dollar has been soaring against other currencies, raising the cost of purchasing basic commodities and metals. This in turn pushed bullion prices lower during yesterday's and today's sessions.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, plummeted by 0.18% to 104.9 points. However, it is still hovering near a four-month peak.

Trump had earlier promised to cut corporate taxes if he wins the 2024 election, along with upping customs duties on imported goods in a bid to cap the slowdown in inflation or even increase it again. This would undermine the Fed’s efforts to lower interest rates.

Investors are awaiting the US central bank’s policy decision later in the day. Expectations suggest a 25-basis-point interest rate cut.

However, extra focus is on the post-meeting press conference of Fed Chairman Jerome Powell to pinpoint the possible directions of policymakers regarding the future of borrowing costs.