Gold prices dropped to fresh four-week lows today, as market sentiment continued to improve amid growing optimism surrounding the effects of a Trump presidency on the U.S. economy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.71% at $1,257.35.
The December contract ended Thursday’s session 0.56% lower at $1,266.40 an ounce.
Futures were likely to find support at $1,249.90, the low from October 17 and resistance at $1,287.50, Thursday’s high.
Demand for the safe-haven precious metal weakened as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected.
Market participants were especially hoping to see Trump’s policies boost spending and inflation in the U.S.
Donald Trump was declared the 45th U.S. President on Wednesday, confounding expectations for a Democratic victory.
Gold was also hit by a stronger dollar, after the U.S. Department of Labor said on Thursday that initial jobless claims decreased by 11,000 to 254,000 in the week ending November 5. Analysts had expected jobless claims to drop by 5,000 to 260,000 last week.