• Gold price depreciated as the US Dollar appreciated to a four-month high due to Trump trades.
• Precious metals are under pressure as safe-haven flows decline due to market optimism.
• The non-yielding XAU/USD faces challenges as US Treasury yields trade near the highest levels since July.

Gold price (XAU/USD) extends its losses for the second successive session on Thursday. The dollar-denominated precious metal faces downward pressure from a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.

Gold prices are under pressure as safe-haven flows decline amid market optimism and “Trump trades.” This shift is driven by the clarity of a presidential victory, while the market had previously been anticipating a contested outcome.

US Federal Reserve’s (Fed) policy decision will be eyed on Thursday. Markets expect a modest 25 basis point rate cut this week. This could provide support for Gold as lower interest rates reduce the opportunity cost of holding non-interest-bearing assets.