BENGALURU- Gold prices fell for a second straight session on Monday, while investors prepared for US economic data and comments from Federal Reserve officials this week for more clarity on the future direction of US interest rates.
Spot gold dropped 0.5 percent to $2,669.22 per ounce. US gold futures fell 0.7 percent to $2,675.90.
“Gold prices were previously seen as a hedge against US political risks, and a quicker-than-expected conclusion in the elections may be a trigger for some near-term unwinding, along with the firmer US dollar,” said IG market strategist Yeap Jun Rong.
On Friday, spot gold prices registered their worst week in more than five months as Donald Trump’s victory in the presidential election has raised the prospect of higher tariffs which could keep interest rates elevated.
“We may expect the Fed to be more cautious in its easing process ahead, which could cap gold prices,” Yeap said. Bullion is considered a hedge against inflation, but higher rates raise the opportunity cost of holding it
