Gold prices stayed nearly a two-month low on Wednesday in the face of a robust dollar, optimism about economic growth under a second Trump administration.

Since the Fed started cutting its benchmark short-term rates a couple of months ago, the 10-year Treasury yield has actually risen, driven by inflationary policies that have been pencilled in.

Traders have reacted to the election results by trimming bets on Fed cuts next year, with rates seen staying above 4% until May 2025.

The world’s largest gold-backed ETF recorded it biggest weekly outflow in more than two years last week as traders to book profits. Bullion has lost around $180 per ounce from its all-time peak hit earlier this month.

They sought haven in gold last month as expectations were high that the election would turn out to be a contested one, but it turned out Trump swept all key battleground states.

The new president told Putin not to escalate in Ukraine last Thursday, the first phone conversation between the two men since Trump won the election, said several people familiar with the matter.

Gold dipped below 50 SMA without much difficulty – an ominous sign of further pains ahead. The head and shoulders top pattern suggests the price could inevitably slide towards 2,550.

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