Nov 6 (Reuters) - Gold prices slid more than 3% to a three-week low on Wednesday as investors piled into the U.S. dollar after Republican Donald Trump was elected U.S. president.
Market participants were also looking ahead to the Federal Reserve's interest rate decision on Thursday for further clues on the bank's easing cycle that had helped gold's stunning rally to successive record highs this year.
Spot gold slipped 2.9% to $2,662.99 per ounce, as of 10:10 a.m. ET (1510 GMT), after hitting a three-week low of $2,652.19. The metal was on track to post its biggest daily loss in five months.
U.S. gold futures shed 3% to $2,668.2.
"A clear presidential victory when the market has been pricing in a contested result, removal of an element of risk, Trump-trades include the dollar's strengthening this morning and the combination of the two has brought gold lower," said StoneX analyst Rhona O'Connell.
Donald Trump recaptured the White House by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected.
Investors believe Trump's presidency will bolster the dollar, causing the Federal Reserve pause in its easing cycle if inflation takes off after expected new tariffs.
The dollar index (.DXY), opens new tab hit a four-month high, making bullion more expensive for overseas buyers.
"Gold will be torn between the risk of rising inflation, potentially slowing the pace of U.S. rate cuts, as tariffs are rolled out," said Ole Hansen, head of commodity strategy at Saxo Bank.
"The FOMC will likely still cut on Thursday but the subsequent language will be studied closely for signs of a pause."
Investors widely expect the Fed to announce a quarter-point rate cut after 50 bps reduction in September.
Commodities from oil and gas to metals and grains dropped as the dollar rallied.
Spot silver fell 4.9% to $31.03 per ounce. Platinum shed 2.8% to $971.7 and palladium was down 3.7% to $1,035.5. All three metals hit their lowest levels in three-weeks.
Reporting by Anjana Anil, Sherin Varghese, and Anushree Mukherjee in Bengaluru; Editing by Veronica Brown and Sharon Singleton