At a low of more than two weeks, gold with the biggest daily drop for over 3 months

Gold prices fell more than 2% on Monday as the dollar “picked up” after the appointment of Federal Reserve Chairman Jerome Powell for a second term, boosting expectations that the central bank can maintain its course by reducing financial support.

Instant gold fell 2% to $ 1,807.60 an ounce, after hitting a low of $ 1,804.30 on Nov. 5. Gold futures in the US fell 2.3% to $ 1,809.30, the biggest daily drop in more than three months, and closing at its lowest level since November 4.

“Gold was launched with the idea that perhaps the Fed would continue in the current course of monetary policy as opposed to the candidacy of Lael Brainard,” which could be seen as paving the way for a different policy, said Jim Wykov, a senior analyst. of Kitco Metals.

A stronger dollar makes gold more expensive for foreign buyers, while higher interest rates translate into increased opportunity cost of owning gold without yield. Money markets now expect the Fed to raise interest rates by 25 basis points by next June compared to last July.

Fed policymakers are debating whether to withdraw support more quickly to tackle inflation, after one of its top officials indicated that the idea would be discussed at a December meeting.

As for the other metals, silver fell 1.3% to $ 24.26 per ounce, platinum fell 1.7% to $ 1,013.45, while palladium fell 5.4% to $ 1,950.31.