Gold prices fell in Asian trade on Monday, extending losses from last week, as risk appetite remained largely upbeat following Donald Trump's victory in the 2024 U.S. presidential election.

The yellow metal was pressured by the strength of the dollar, which steadied ahead of more cues on U.S. inflation and the Federal Reserve this week. Expectations for higher interest rates in the long term, under a Trump presidency, also weighed on gold prices.

Spot gold fell 0.5% to $2,670.69 per ounce, while December gold futures dropped 0.1% to $2,677.50 per ounce.

Gold is suffering from a decline after reaching record highs last week, with most of the losses occurring after Trump’s election victory.

Trump is expected to implement more expansionary policies during his second term, which could lead to higher inflation and sustained high interest rates over the long term.

The Federal Reserve cut interest rates by 25 basis points last week, signaling a cautious approach toward further monetary easing.

This week, attention is focused on the U.S. Consumer Price Index (CPI), which is expected to provide more cues on whether inflation is cooling in line with the Fed's expectations.

Several Federal Reserve officials are also scheduled to speak this week, offering further insights into monetary policy.

On the other hand, palladium futures rose 0.4% to $983.05 per ounce, while silver futures fell 0.5% to $31.293 per ounce.
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