Nov 8 Reuters Gold prices fell on Friday and were headed for a second straight weekly fall as traders assessed the impact of Donald Trump39;s presidency and its implications for U.S. interest rates.

Spot gold fell 0.8 to 2,685.70 per ounce as of 0743 GMT and has slid nearly 2 this week. Prices hit over threeweek lows on Wednesday in the aftermath of Trump39;s U.S. presidential election win, but rebounded by over 1 a day later.

U.S. gold futures shed 0.5 to 2,693.20.

The U.S. dollar index was set for a slight weekly gain after Trump39;s election victory. A stronger dollar makes bullion more expensive for overseas buyers.

The gold market was waiting for a trigger to prompt some liquidation. There is some kind of uncertainty on the trajectory of U.S. rate cuts and that39;s why we are seeing this pullback in gold, said Soni Kumari, a commodity strategist at ANZ.

The Federal Reserve cut interest rates by 25 basis points on Thursday, as was expected, but indicated a careful and measured approach to any further reductions. Chair Jerome Powell said the presidential election results would have no nearterm impact on monetary policy.

Traders see a 71 chance of another 25bps cut in December.

Bullion is considered a hedge against inflation, but higher rates raise the opportunity cost of holding the commodity.

During Trump39;s initial term in office, gold rallied, and his policies are unlikely to undergo significant changes, said Hugo Pascal, a precious metals trader at…