Investing.com - 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.
Investors currently price an 81.1% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Also on the Comex, silver futures for December delivery settled down 7.5% at $17.33 a troy ounce as the stronger dollar weighed.
Elsewhere in metals trading, copper prices fell on Friday, snapping a rally that had propelled prices to the highest in 17 months.
Copper for December delivery settled at $2.50 a pound on the Comex. Prices had risen as high as $2.73 a pound before erasing gains.
Copper was boosted after Trump raised the prospect of increased infrastructure spending, while recent signs of strengthening demand in China have also underpinned prices.
In the week ahead, investors will be looking to congressional testimony by Fed Chair Janet Yellen on Thursday for fresh indications on whether interest rates will rise next month.
Japan is to release preliminary figures on third quarter growth on Monday and the U.S., the U.K. and Canada are all to release what will be closely watched inflation data later in the week.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 14
Japan is to release preliminary data on third quarter economic growth.
China is to produce figures on industrial production and fixed asset investment.
European Central Bank President Mario Draghi is to speak at an event in Rome.
New Zealand is to publish figures on retail sales.
Tuesday, November 15
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.
Germany and the wider euro zone are to publish preliminary estimates of third quarter growth.
The ZEW Institute is to report on German economic sentiment.
The U.K. is to release a report on consumer inflation. Later in the day Bank of England Governor Mark Carney and other bank officials are testify on inflation and the economic outlook to the Treasury Committee.
The U.S. is to release data on retail sales and a report on manufacturing activity in the New York region.
Wednesday, November 16
The U.K. is to publish its closely watched monthly jobs report.
Canada is to report on manufacturing sales.
The U.S. is to release data on industrial production and producer prices.
Thursday, November 17
Australia is to release its jobs report.
The U.K. is to publish a report on retail sales.
The euro zone is to release revised inflation data.
The U.S. is to release a string of reports covering inflation, jobless claims, housing starts and manufacturing activity in the Philadelphia region.
Fed Chair Janet Yellen is to testify on the economic outlook before the Joint Economic Committee, in Washington.
Friday, November 18
ECB head Mario Draghi is to speak at an event in Frankfurt.
Canada is to round up the week with data on consumer prices.