Gold prices declined in Asian trade due to profit-taking and speculation surrounding a potential Donald Trump presidency. The dollar was favored, putting pressure on gold prices. This decline came after gold hit a record high earlier in the week, prompting some profit-taking.
Insight on Gold Prices:
Despite the initial surge in gold prices driven by optimism over potential interest rate cuts in the U.S., the dollar gained strength from strong jobless claims data. This unexpected boost in the labor market contributed to the dollar’s strength, impacting gold prices. Additionally, speculation over a second term for Trump and his protectionist policies also played a role in the decline of gold prices.
The impact on Other Precious Metals:
The decline in gold prices had a ripple effect on other precious metals as well. Silver prices fell by 0.5% and platinum dropped to an over two-week low. The overall sentiment in the precious metal market was influenced by the downward trend in gold.
Insight on Copper Prices:
Copper prices stabilized on Friday but saw significant losses throughout the week due to uncertainty surrounding China, the top importer of copper. Weighed down by weaker-than-expected Chinese economic growth data and potential trade restrictions from the U.S., copper prices faced challenges. The lack of clear stimulus measures from China despite the Third Plenum also contributed to the negative sentiment towards copper prices.
