Gold prices dropped to around $2,600 per ounce on Tuesday, marking a third consecutive day of decline and reaching their lowest point in a month.
Gold dips to $2,600 per ounce
This downturn has been driven by a stronger US dollar and a reduced demand for safe-haven assets as investors increasingly favor risk assets. Markets are evaluating the impact of Donald Trump’s election victory, particularly its potential effects on fiscal policy and monetary strategy.
Eyes on U.S. political moves
Expectations are building that early tariffs under Trump could drive inflation higher, prompting speculation that the Federal Reserve may hold off on its easing cycle in 2025. This has also lowered the odds of a December rate cut from nearly 80% a week ago to 65%. Additionally, World Gold Council data reveals that Indian gold ETF holdings have surged, doubling over the past four years to a record high of 54.5 tonnes as of October 31.
