Gold Price prediction for Tuesday, November 25: Gold rate rises ahead of key U.S. economic data

Gold rate is going up ahead of fresh U.S. economic data for further clues on the monetary policy on Tuesday. Gold prices rose more than 1 per cent on Monday, supported by growing expectations of a Federal Reserve interest rate cut next month. Spot gold gained 1.2 per cent at $4,111.86 per ounce. U.S. gold futures for December delivery settled 0.4 per cent higher at $4,094.2 per ounce.

Investors are looking out for key economic data that were delayed due to the government shutdown, including U.S. retail sales, jobless claims and producer price figures due later this week.

"We're waiting for data and the expectation is that it may be somewhat weaker. Inflation probably not very elevated and that all points to gold doing fairly well," Bart Melek, head of commodity strategies at TD Securities said.


"The market is increasingly getting convinced that the U.S. Federal Reserve is on track to cut interest rates in December," said Melek.

New York Fed President John Williams said on Friday that U.S. interest rates could fall "in the near term" without putting the Fed's inflation goal at risk, while helping guard against a slide in the job market.

Bets of a rate cut next month stand at 79%, the CME FedWatch tool showed on Monday. Gold, a non-yielding asset, tends to do well in low-interest-rate environments, and during geopolitical and economic instability.

Meanwhile, the U.S. and Ukraine continued talks on Monday to craft an acceptable plan to end Russia's war in Ukraine, after agreeing to revise an earlier U.S. proposal that many viewed as overly favorable to Moscow.

"With the Fed debate taking more headlines and geopolitical swings, especially vis-à-vis Ukraine, (gold) is still likely to catch a bid but in our view, it remains range bound between $4,000 and $4,100," Rhona O'Connell, an analyst at StoneX, said in a note.

FAQs

Q1. What are prices of Silver, Platinum, Palladium?

A1. Spot silver added 1.7% to $50.84 per ounce, platinum rose 2.3% to $1,545.91, while palladium gained 1.7% to $1,398.21.

Q2. What are current gold prices?

A2. Spot gold gained 1.2 per cent at $4,111.86 per ounce. U.S. gold futures for December delivery settled 0.4 per cent higher at $4,094.2 per ounce.