Investing.com - Gold prices dropped to fresh four-week lows on Friday, as market sentiment continued to improve amid growing optimism surrounding the effects of a Trump presidency on the U.S. economy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.71% at $1,257.35.
The December contract ended Thursday’s session 0.56% lower at $1,266.40 an ounce.
Futures were likely to find support at $1,249.90, the low from October 17 and resistance at $1,287.50, Thursday’s high.
Demand for the safe-haven precious metal weakened as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected.
Market participants were especially hoping to see Trump's policies boost spending and inflation in the U.S.
Donald Trump was declared the 45th U.S. President on Wednesday, confounding expectations for a Democratic victory.
Gold was also hit by a stronger dollar, after the U.S. Department of Labor said on Thursday that initial jobless claims decreased by 11,000 to 254,000 in the week ending November 5. Analysts had expected jobless claims to drop by 5,000 to 260,000 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 98.60, just off Thursday’s two-and-a-half week highs of 99.08.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, silver futures for December delivery slid 0.49% to $18.645 a troy ounce, while copper futures for December delivery surged 2.98% to $2.628 a pound.
Prices of the red metal gained 7.9 cents, or 3.34%, on Wednesday after Trump's victory speech included a pledge to spend on rebuilding America's infrastructure.
The metal is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.