In a similar development, gold rates slipped to a near three-week low on Wednesday, beating a retreat as the dollar jumped after Republican Donald Trump was elected US president in a remarkable political comeback.
Investors in gold were also turning their attention to the next Federal Reserve policy meeting, seeking clues on the pace of interest rate cuts. The prospect of several rate cuts had been underpinning bullion’s stunning rally this year.
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Spot gold was down 1.5% to $2,703.93 per ounce at 1152 GMT. Bullion hit a record high of $2,790.15 last Thursday.
US gold futures were down 1.3% to $2,713.60.
The dollar hit a four-month high, making bullion more expensive for buyers holding other currencies, as traders bet the prospect of higher tariffs under Trump could keep interest rates higher for longer.
“Gold will be torn between the risk of rising inflation, potentially slowing the pace of US rate cuts, as tariffs are rolled out and continued demand for safe haven assets,” said Ole Hansen, head of commodity strategy at Saxo Bank.