Nov 12 (Reuters) - Gold prices fell to a near two-month low on Tuesday, pressured by a stronger U.S. dollar and growth optimism tied to Trump's win, reflecting a broader market pivot as investors focus on upcoming U.S. economic data and Federal Reserve policy signals.
Spot gold was down 0.4% at $2,609.09 per ounce by 10:01 a.m. ET (1501 GMT), after dropping 1% to hit its lowest since Sept. 20 at $2,589.59 earlier in the session. U.S. gold futures fell 0.1% to $2,615.70.
A more than four-month high in the dollar index increased the cost of bullion for holders of other currencies, while bitcoin surged on continued demand from investors seeing it as a play for the incoming Trump administration. U.S. Treasury yields also edged higher.
"I think this is just a corrective move in a longer-term bullish market. The policies right now are thought to be pretty inflationary. So if we see another wave of inflation coming, then that should drive gold higher," said Daniel Pavilonis, senior market strategist at RJO Futures.
Technically, the market seems to be poised for an upward move, with support around $2,600, he added.
Markets are watching a heavy slate of U.S. economic data this week with CPI on Wednesday along with remarks from Fed Chair Powell and other central bank officials.
Following the Fed's recent rate cut to a range of 4.5%–4.75%, traders currently see a 65% chance of another rate cut in December, versus around 80% before Trump's victory.
Gold, buoyed by pre-election euphoria as a "Trump trade", is now dipping on growth optimism, said Carsten Menke, an analyst at Julius Baer in a note.
Yet, a multi-polar world and the "desire of emerging market central banks to be less dependent on the U.S. dollar and – in an extreme case – less susceptible to U.S. sanctions," still point to a longer-term rise in gold prices, Menke added.
Spot silver rose 0.1% to $30.71, platinum lost 1.6% to $949.80 and palladium fell 3.2% to $949.51.
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Vijay Kishore
