In early Asian trading on Monday, December 2, spot gold fluctuated and fell slightly, currently trading at $2,646.95 per ounce. Gold prices edged higher on Friday, boosted by a fall in the U.S. dollar and ongoing geopolitical tensions, but November still posted its biggest monthly drop since September last year, mainly due to the sell-off triggered by Trump's election victory. Spot gold climbed 0.5% to $260.26 an ounce on Friday, but will fall more than 2% last week, as gold prices fell more than 3% last Monday. Although gold prices tried to rebound in the following trading days, they failed to reverse With last Monday's decline, investors need to beware of further downside risks in gold prices. Spot gold fell 3.4% in November, its biggest monthly drop since September 2023, as "Trump excitement" boosted the dollar earlier in November, stalling gold's gains and triggering the election. After selling. The U.S. dollar index fell to a more than two-week low on Friday but was still up 1.8% in November as Trump's victory on November 5 fueled expectations of large fiscal spending, higher tariffs and tighter border controls. Gold is now under pressure as higher tariffs could spur inflation and lead the Federal Reserve to be cautious about further interest rate cuts. It’s still uncertain how Trump’s vowed tariffs will be implemented. However, the uncertainty on the matter, namely tariffs that could prompt a slowdown in economic growth, is actually positive for the gold market from a risk-off perspective. Policies promising to crack down on illegal immigration could also lead to a resurgence of inflation. Stronger-than-expected economic data also boosted bets that the Federal Reserve will slow the pace of interest rate cuts as it approaches neutral. Traders see a 66% chance of the Fed cutting interest rates by 25 basis points at its Dec. 17-18 meeting, but only a 17% chance of another rate cut in January.