Gold prices fell to five month lows on Friday as risk appetite recovered following Donald Trump’s victory in the U.S. presidential election, sapping investor demand for safe haven assets.

Gold for December delivery on the Comex division of the New York Mercantile Exchange settled down 3.10% at $1,227.15 a troy ounce, the lowest close since March 6.

Market sentiment was boosted by optimism that increased fiscal spending and tax cuts under a Trump administration will spur economic growth and inflation.

Gold prices were also pressured lower by the stronger U.S. dollar and ongoing expectations for a Federal Reserve interest rate increase in December.

The U.S. dollar index hit nine-month highs on Friday and rose 2.02% last week, the largest weekly gain since November 2015.

Gold is priced in dollars and becomes more expensive for holders of other currencies as the dollar rises.

Expectations for higher U.S. interest rates remained intact amid optimism that a pick-up in growth will allow the Fed to tighten borrowing costs.


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