Gold price prediction: Gold rate crashes today. What to expect in November, December?

Gold price on Friday fell big. Spot gold was down 0.5 per cent at $4,004.37 per ounce having gained nearly 4 per cent so far this month. U.S. gold futures for December delivery were steady at $4,016.30 per ounce. The U.S. dollar index held near its highest in three months against rivals, making greenback-priced bullion more expensive for other currency holders.

Gold Rate Prediction

Gold retreated towards $4,000 an ounce on Friday as uncertainty over another U.S. rate cut in December helped keep the dollar near three-month highs, but held on track for its third straight monthly gain.


Gold is under pressure as the dollar has been strengthening on the back of those hawkish remarks (by Fed Chair Powell), said ActivTrades analyst Ricardo Evangelista. Markets had been taking another rate cut in December for granted, he said.

On Wednesday, the Fed cut interest rates by 25 basis points for the second time this year, taking the benchmark overnight rate to a target range of 3.75 per cent – 4.00 per cent.

Markets now price in a 67 per cent probability of a 25-bp cut compared with a 91.1 per cent chance a week ago, CME Group's FedWatch tool showed, after Chair Jerome Powell's hawkish remarks.

Safe-haven demand has also been dented on trade-related optimism following trade talks between the U.S. and China this week.

On Thursday U.S. President Donald Trump said he had agreed to trim tariffs on China in exchange for Beijing cracking down on illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earths exports flowing.

The macro background remains supportive of gold in the medium to long term, with ongoing geopolitical turbulence in Ukraine and the Middle East, and between the U.S. and China, Evangelista added.

Spot silver fell 0.2 per cent to $48.82 per ounce, platinum lost 1.5 per cent to $1,586.64, and palladium was down 0.4 per cent at $1,438.72.

FAQs

Q1. What are prices of silver, platinum, palladium?
A1. Spot silver fell 0.2 per cent to $48.82 per ounce, platinum lost 1.5 per cent to $1,586.64, and palladium was down 0.4 per cent at $1,438.72.

Q2. What to expect from U.S. Fed?
A2. On Wednesday, the Fed cut interest rates by 25 basis points for the second time this year, taking the benchmark overnight rate to a target range of 3.75 per cent – 4.00 per cent. Markets now price in a 67 per cent probability of a 25-bp cut compared with a 91.1 per cent chance a week ago, CME Group's FedWatch tool showed, after Chair Jerome Powell's hawkish remarks.