Gold fell far from its comfort level below $2,700 on Wednesday after the US Presidential election won by former President Donald Trump supported US dollar bond yields and US Treasuries.
At 9.10am, gold was at $2,657.10, down 0.07% since it opened in early Asian trade on Thursday.
Market sentiment is now back to calm after the election results. The Republican Party, Donald Trump managed to win the majority of seats in the Senate and govern the House of Representatives.
Markets also provided support for US equities to record highs and the USD surged to a four-month high and a jump in US Treasury yields.
For now, investors will look further into the outlook for the US economy following Trump's proposed high tariffs, widening fiscal deficit and tax hikes.
However, his economic proposals are at odds with the Fed's efforts against inflation. The US central bank will have to use a gradual approach when easing its monetary policy later.
Meanwhile, gold prices lost more than 2.50% on the day of Donald Trump's victory and it was the biggest daily drop ever during gold trading in 2024.
The market will look forward to the next US economic schedule regarding the Fed's monetary policy decision where the central bank is expected to lower interest rates by 25 basis points to 4.50% to 4.75%.
