Gold prices dropped from 2740 to 2701 dollar per oz after reaching a record high in late October as it faces a strengthening dollar. With the greenback continuing its upward momentum, gold could face downside risks over the near-term. Donald Trump claimed victory in the presidential race pushing the dollar to the upside. Trump celebrated with his running mate, Senator JD Vance, and his family, while also gaining broad support. Although Republicans secured a Senate majority, the House remains in contention. Despite gold trading lower in the early European session, a confirmed Trump win could potentially drive up demand for the metal, particularly amid potential political and economic instability.

Meanwhile, the euro weakened significantly with a huge drop from 1.093 to 1.073, in response to the growing concern that a Trump presidency could lead to higher tariffs and adversely affect European economies. The uncertainty surrounding trade policies and geopolitical tensions under Trump contributed to fears of disruptions in European trade. As a result, the euro’s near-term outlook could remain bearish, with traders cautious about the potential negative impact on the region’s economic prospects under new U.S. policies.