Gold faced a sharp drop over the course of the week as expectations for another cut to interest in the US were dialled back and profit taking took hold.
The yellow metal was trading at US$2,569 an ounce on Friday, its lowest since mid-September, having fallen from US$2,685 at the start of the week.
Jerome Powell on Thursday had signalled the Federal Reserve was in no rush to cut rates further, after a reduction this month, labelling the US economy’s recent performance as “remarkably good”.
Markets scaled back expectations for a quarter-point interest rate cut in the wake of his comments, pricing in a 60% chance of the move, against 80% earlier in the day.
BullionVault research director Adrian Ash noted profit taking also had a part to play, as investors sold off following gold’s record-breaking run in recent months.
“The heaviest gold selling on BullionVault so far in November has come among investors who began buying gold during or after the Covid pandemic,” he said.
Donald Trump’s sweeping victory in the US election had also ended months of uncertainty in the run-up to the vote, Ash added, adding this was unlikely to last.
“While gold loves uncertainty, the clarity of Trump's red sweep is currently overwhelming the volatility his second term is certain to bring in due course,” Ash said.