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Spot Gold retreated on Friday, slipping below the $2,700 mark, and looked set for a 1.70% weekly loss due to a stronger US Dollar and a rise in Treasury yields after Donald Trump’s victory in the 2024 presidential election.

“The gold market was waiting for a trigger to prompt some liquidation. There is some kind of uncertainty on the trajectory of U.S. rate cuts and that’s why we are seeing this pullback in gold,” Soni Kumari, a commodity strategist at ANZ, was quoted as saying by Reuters.

Gold plunged to a more than three-week low on Wednesday in the wake of Trump’s election win.

The yellow metal then regained certain ground on Thursday, surging 1.79%, after the Federal Reserve reduced borrowing costs at the conclusion of its two-day policy meeting.

The Fed cut its federal funds rate target range by 25 basis points to 4.50%-4.75% at its November meeting, as largely expected.

At the press conference following the FOMC policy decision, Fed Chair Jerome Powell abstained from providing specific guidance on future interest rate trajectory.

In regard to the December meeting, the Fed Chair said the central bank did not rule “out or in” a rate cut.

Powell pointed out the Fed was not on any pre-set course and it would keep making policy decisions on a meeting by meeting basis, while carefully assessing incoming data, the evolving outlook and the balance of risks.

Powell also noted the results of this week’s US presidential election were not likely to affect the Fed’s near-term policy path.

Markets are now pricing in about a 71% chance of another 25 basis point rate cut at the Fed’s December meeting.

As of 8:34 GMT on Friday Spot Gold was losing 0.57% to trade at $2,691.16 per troy ounce.

Gold Futures for delivery in December were edging down 0.37% on the day to trade at $2,695.70 per troy ounce.

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