WASHINGTON (dpa-AFX) - Gold prices tumbled on Wednesday as the dollar climbed higher after Donald Trump won the Presidential Election, defeating Democratic candidate Kamala Harris.
The dollar index surged to 105.44 this morning, and despite easing to 104.97, remains high up with a strong gain of about 1.5% over Tuesday's close.
The dollar rallied as interest rates may well stay higher for longer as Trump's proposed policies on taxes, trade and immigration may boost growth but at the same time result in increased government spending.
Also, Trump's call for increased tariffs on China and other countries could lead to renewed inflation concerns.
Gold futures for November ended down $72.70 or about 2.65% at $2,667.60 an ounce, recording the largest single session loss in dollar terms since June 17, 2021. In percentage terms, today's loss marks the largest in six months.
Silver futures for November settled at $31.221 an ounce, down $1.4340 or about 4.4%, while Copper futures for November dropped to $4.2270 per pound, losing $0.2235 or about 5%.
Investors now await the Federal Reserve's interest-rate decision on Thursday, with a 25-bps rate cut already priced in by markets. Fed Chair Jerome Powell's press conference is eyed for clues about future rate moves by the central bank.
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