Gold loses glitter as Trump shines

As Donald Trump shone in the US, gold lost its glitter all over the world, including in India. His victory in the US presidential election resulted in a dip in gold prices. The US Federal Reserve’s decision on the interest rate today is also being keenly watched.

In Delhi, the price of 24k gold decreased by Rs 1,790 per 10 grams, hammering it down to Rs 78,710. Also, 22k gold prices declined by Rs 1,650, coming down to Rs 72,150 per 10 grams.

On the global front, at 0538 GMT on Thursday, spot gold fell by 0.1 per cent at $2,657.65 per ounce, the lowest level since mid-October. Gold had soared to a record high of $2,790.15 per ounce last week. There was also a 0.4 per cent decline in US gold futures, which traded at $2,665.20.

Traders reportedly expect a 25-basis-point interest rate cut by the US Fed.

Kelvin Wong, OANDA’s senior market analyst for Asia Pacific, told the media that the impact of President-elect Trump’s policies will slow down rate cuts, and this will affect gold prices.

Peter Fung, head of dealing at Wing Fung Precious Metals, remains bullish on gold in the long run. He predicts that gold prices rise to $3,000 per ounce next year.

Fung notes that gold continues to attract buyers seeking protection against risks, such as trade wars and economic instability.

Renisha Chainani, head of research at Augmont - Gold for All, sees an opportunity to buy gold in the fall of its price.

Gold is widely seen as a safe investment, especially in uncertain times.