Gold prices set for second straight weekly fall

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Gold prices set for second straight weekly fall
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PUTRAJAYA: Graft investigators have searched the house of FashionValet founders Datin Vivy Yusof and Datuk Fadzaruddin Shah Anuar and frozen several of their accounts with RM1.1mil in funds.

An employee holds one kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Dec. 22, 2023. - Photographer: Chalinee Thirasupa/Bloomberg

Spot gold fell 0.8% to $2,685.70 per ounce as of 0743 GMT and has slid nearly 2% this week. Prices hit over three-week lows on Wednesday in the aftermath of Trump's U.S. presidential election win, but rebounded by over 1% a day later.The U.S. dollar index was set for a slight weekly gain after Trump's election victory. A stronger dollar makes bullion more expensive for overseas buyers.

The Federal Reserve cut interest rates by 25 basis points on Thursday, as was expected, but indicated a careful and measured approach to any further reductions. Chair Jerome Powell said the presidential election results would have no"near-term" impact on monetary policy.Bullion is considered a hedge against inflation, but higher rates raise the opportunity cost of holding the commodity.

"Running a higher deficit, putting tariffs in place are both inflationary measures, which should be positive for gold."

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