gold prices fell to a five-month low friday as appetite for riskier investments improved after donald trump <u+2019>s victory in the u.s. presidential election, damping demand for haven assets. gold for december delivery settled down 3.3% at $1,224.30 a troy ounce on the comex division of the new york mercantile exchange, closing at the lowest level since june 3. friday<u+2019>s drop marked the fifth straight day of losses for the precious metal, and the biggest one-day drop in nearly three years. <u+201c>the market is still trying to filter through the election news,<u+201d> said bob haberkorn, senior market strategist at rjo futures. <u+201c>the safe-haven asset might be off the table here for the short term.<u+201d> expectations for president-elect trump<u+2019>s plans for tax cuts and infrastructure spending have driven equity markets higher after the election. the dow jones industrial average climbed to a record and bond yields rose around the world thursday. <u+201c>observers of the gold market must be rubbing their eyes in bewilderment. donald trump is elected the new u.s. president and the reaction is euphoric celebration on the financial markets<u+2014>gold, on the other hand, finds itself under noticeable pressure,<u+201d> analysts at commerzbank said. besides significantly higher risk appetite, other factors weighing on the gold price include the firm u.s. dollar and higher chances of a u.s. federal reserve rate increase in december. the wall street journal dollar index, which weighs the dollar against a basket of other currencies, was up 0.3% on friday. as gold is priced in dollars, it becomes more expensive for holders of other currencies as the dollar appreciates. meanwhile, federal-fund futures tracked by cme put the likelihood of an increase at the next federal reserve meeting at 81.1%. a rate increase is typically bearish for gold, which struggles to compete with other investments as rates rise, as it doesn<u+2019>t bear interest. <u+201c>the december fed meeting is still hovering over this market,<u+201d> mr. haberkorn said. <u+2014>stephanie yang contributed to this article. write to georgi kantchev at georgi.kantchev@wsj.com and stephanie yang at stephanie.yang@wsj.com
gold prices reach five-month low - wsj
georgi kantchev stephanie yang