London: Gold prices dropped to nearly a three-week low today as the dollar retained its strength following Donald Trump's declaration of victory in the U.S. presidential election. Investors are now closely watching the upcoming Federal Reserve meeting for insights on future monetary policy.
Spot gold fell by 0.8 percent to $2,721.21 per ounce, down from a record high of $2,790.15 reached last Thursday. US gold futures also declined by 0.7 percent to $2,730.20 per ounce.
The dollar reached a four-month high, making gold more expensive for buyers holding other currencies.
Gold, traditionally a hedge against inflation, becomes less attractive when interest rates rise, as it offers no yield.
