Gold Prices Continue to Decline as the New Week Begins

Forex - The price of gold declined on the first day of the new week. Gold fell to the level of $2,666.58 as investors prepared for U.S. economic data and comments from Fed officials this week, seeking more clarity on the future direction of U.S. interest rates. Currently, gold is trading at $2,670.00, down 0.56% from Friday.

IG market strategist Yeap Jun Rong stated, "Gold prices were previously seen as a hedge against political risks in the U.S., and the faster-than-expected election results could trigger some easing in the short term along with a strengthening U.S. dollar."

Last week, gold prices recorded their worst week in over five months as Trump's victory in the presidential elections increased the likelihood of higher tariffs that could keep interest rates elevated.

Yeap added, "We can expect the Fed to be more cautious in its easing process going forward, which could limit gold prices."

Analysts are pointing to the support level for gold at $2,643 if it remains below $2,682. If this level is breached, the target could be $2,603.

On the upside, resistance is seen in the range of $2,690 to $2,704.