Gold Starts the New Week with a Drop Following the U.S. Elections

Following the conclusion of the U.S. presidential elections, gold futures declined as investors began to take profits. The futures contracts for gold fell below $2,650 per ounce with a decrease of up to 1.5% on the first day of the week, remaining under pressure due to the strengthening U.S. dollar. Analysts believe that this price movement, alongside an increase in risk appetite, indicates that investors are positioning themselves for more uncertain outcomes.

The next major catalyst for gold could be the Consumer Price Index data set to be released on Wednesday. Steps that the Fed may take to ease monetary policy in light of this data could be decisive for the movement of gold prices. Market commentators predict that further interest rate cuts could increase inflation, thereby supporting gold. Additionally, speculations continue on how Trump's international relations may impact the gold reserve strategies of BRIC countries. Positive expectations for the gold market in 2025 remain intact. Last week, gold saw weekly losses exceeding 3% following Donald Trump's election victory. However, RBC Capital Markets analysts believe that despite short-term fluctuations after the election, gold will remain a good investment vehicle for long-term value appreciation. A positive trend among precious metals relative to other commodities and an increase in managed assets support the future potential of gold.

RBC forecasts that gold will reach various record levels, with ETF outflows stabilizing by the end of the year. In 2025, gold is expected to perform better due to an increase in investor flows. This could provide investors with opportunities to position themselves considering macroeconomic narratives and market dynamics.

Investors continue to assess how changes in U.S. interest rate policies will interact with the elected president's fiscal policies. While the likelihood of a rate cut in December is priced at 65%, investors will also evaluate critical U.S. data such as the Producer Price Index, Weekly Unemployment Claims, and Retail Sales. These figures could be decisive for the short-term trend of the gold market and help shape investors' strategies.