Gold logs biggest daily fall in over 3 years

Gold bars

Gold prices closed in the red today, Nov. 11, falling at its biggest daily rate in more than three years, due to a stronger US dollar amid investor optimism that the policies of Republican President-elect Donald Trump will lead to a robust US economy.

Gold futures prices for December delivery declined 2.9%, or $77.10, to $2,617.70 an ounce, the lowest level since the Sept. 19 session, and the highest daily pullback in percentage and US dollar since June 17, 2021.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.50% to 105.53 points at 10:35 pm Makkah time, after hitting 105.71 points earlier, the highest since July 3.

The prospect of higher tariffs early in the Trump presidency has pushed the dollar higher, which in turn has weighed on the yellow metal, Daniel Ghali, a commodities strategist at TD Securities, told Reuters.

According to the CME FedWatch Tool, traders see a 65% chance of a 25-basis-point rate cut by the Fed at its September meeting, versus a 35% possibility of a hold.