Nov 6 (Reuters) - Gold prices slipped to a near three-week low on Wednesday, beating a retreat as the dollar jumped after Republican Donald Trump was elected U.S. 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.
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.
U.S. 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.
Gold is considered a hedge against inflation but higher interest rates reduce non-yielding bullion's appeal.
Gold has done well in recent years under Republican and Democrat administrations - spot gold rose by 54% during Trump's first term and has gained around 50% so far under current President Joe Biden.
"Looking ahead, the big question for the gold market is how different today’s version of President Trump will be from the one that won the election eight years ago," said Carsten Menke, an analyst at Julius Baer.
Though investors braced for volatile trading this week as voting was underway in an extremely tight U.S. presidential election.
The Fed's two-day policy meeting ends on Thursday and markets broadly expect the Fed to announce a quarter-point rate cut after a 50-basis-point reduction in September.
"The FOMC will likely still cut on Thursday but the subsequent language will be studied closely for signs of a pause," Hansen added.
Commodities from oil to metals and grains slid on Wednesday as the dollar strengthened.
Spot silver fell 2.6% to $31.80 per ounce. Platinum shed 2% to $979.65 and palladium was down 2.9% to $1,044.75. All three metals hit their lowest level in three-weeks.
Reporting by Anushree Mukherjee and Anjana Anil in Bengaluru,Polina Devitt in London; Editing by Louise Heavens and Mark Potter
