Fed to be cautious in reducing interest rates, says analyst
Market awaits this week39;s speech by Fed39;s Jerome Powell
US CPI, PPI data also due
Nov 11 Reuters Gold prices declined for a second session on Monday, hurt by a firmer dollar and increased risk appetite, as markets expect the Federal Reserve to adopt a cautious approach under U.S. Presidentelect Donald Trump39;s administration.
Spot gold fell 0.6 to 2,666.48 per ounce, as of 0927 GMT. U.S. gold futures fell 0.8 to 2,673.20.
Gold prices have declined primarily due to a stronger U.S. dollar, rising Treasury yields, and increased risk appetite in financial markets a trend that has gained momentum since Donald Trumps victory in last weeks presidential election, said Ricardo Evangelista, senior analyst at ActivTrades.
The dollar index rose 0.3 after having posted a weekly gain last week, making gold less appealing for other currency holders, while the SP 500 on Friday closed with its biggest weekly percentage gain in a year.
Gold, meanwhile, logged its worst week in over five months as Trump39;s victory raised the prospect of higher tariffs, which could keep interest rates elevated.
Trump being the presidentelect has directly led to some paring in ratecut expectations into 2025, with a potential Red Wave translating to little resistance to his tax cuts and spending plans, coupled with his stance for more tariffs, said IG market strategist Yeap Jun Rong.
Overall, that may complicate the Feds fight…