WASHINGTON (dpa-AFX) - Gold prices fell sharply on Monday as the dollar stayed firm, extending recent gains, and investors chose to pick up riskier assets on hopes of reduction in corporate taxes during Donald Trump's second term as U.S. President.
Analysts predict Trump's re-election may favor corporates through deregulation, mergers and acquisitions and proposed tax cuts, but policies such as increased tariffs could result in an uptick in inflation and complicate the Federal Reserve's interest-rate plans.
The dollar index climbed to 105.71 before easing slightly to 105.55, still up with a gain of more than 0.5%.
Gold futures for November closed down $76.30 or about 2.84% at $2,611.20 an ounce, recording the largest decline in dollar as well as percentage terms, since June 17, 2021.
Silver futures for November closed down $0.819 or 2.61% at $30.540 an ounce, while Copper futures for November dropped to $4.2340 per pound, losing $0.0525 or about 1.22%.
In economic releases, U.S. reports on consumer and producer prices, retail sales and industrial production due later in the week may provide further insights into the health of the world's largest economy as the Presidency and Senate falls into Republican hands, presenting a clear path for Trump to enact any major policy changes.
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