Gold prices fall below $2,600/ounce

Gold bars

Gold prices is still down today, Nov. 12, trading at the lowest level in nearly two months, as the US dollar gained ground after Donald Trump won a second presidential term, which threatens to hinder the Federal Reserve's efforts to ease monetary policy.

Gold futures prices for December delivery shed 0.65%, or $17.10, to $2,600.60 per ounce at 12:35 pm Makkah time, after hitting $2,596.70 an ounce during the session.

Likewise, spot prices also tumbled by 0.96% to $2,593.60 apiece. December silver contracts also plunged by 0.92% to $30.33 per ounce, in tandem with a 1.46% drop in platinum spot prices to $952.92 an ounce.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, climbed by 0.26% to 105.82 points, clinching a four-month peak.

The US dollar has gained positive momentum since mid-last week following the announcement of Trump's US presidential victory, who has repeatedly threatened to pursue protectionist trade policies that would raise domestic prices and possibly undermine the Fed’s interest rate cut efforts.

This put pressure on the performance of gold and basic commodities in general, as the rise of the US dollar increases the cost of purchasing metals in other currencies, while the rise in interest rates causes an uptick in the opportunity cost of holding precious metals.

The CME FedWatch Tool showed that investors' expectations for a Fed rate cut in the upcoming December meeting decreased by 25 basis points to 65% from 77% a week ago, compared to a higher probability of a rate fix of about 35% from 22% during the same period.