Gold price prediction: Gold rate falls on Tuesday. More corrections expected in new few weeks? Details here

Gold price fell on Tuesday. Spot gold rate was down by 0.2 per cent to $3,993.19 per ounce, after declining 0.9 per cent earlier. U.S. gold futures for December delivery eased 0.3 per cent to $4,003.40 per ounce. U.S. dollar index eased after hitting a three-month high against its rivals, making gold less expensive for other currency holders.

Gold is consolidating in the region of $4,000 and the next few weeks will be crucial for understanding if there's space for more rally or we see a correction, said Carlo Alberto De Casa, external analyst at banking group Swissquote.

"We're seeing a stronger U.S. dollar and expectations for a cut in December going down. Also, yields are going up and this is affecting gold," Carlo Alberto De Casa said.


Benchmark U.S. 10-year yields retreated from a three-week high on Monday. The Federal Reserve last week cut rates for the second time this year, but Chair Jerome Powell said another reduction this year was "not a foregone conclusion".

Market participants now see a 65 per cent chance of another rate cut in December, down from over 90 per cent prior to Powell's remarks, per CME's FedWatch Tool.

Non-yielding gold thrives in a low-interest-rate environment and during times of economic uncertainty. Investors now eagerly await the release of ADP U.S. employment data, due on Wednesday, and ISM PMIs this week for cues on rate cuts.

"The initial break below that level ($4,000) triggered a wave of technical selling and unwinding of long positions," Fawad Razaqzada, market analyst at City Index and FOREX.com, said in a note.

Spot silver was down 0.6 per cent at $47.78 per ounce, platinum eased 0.6 per cent to $1,556.50 and palladium fell 2.5 per cent to $1,408.86.

FAQs

Q1. What are spot silver, platinum, palladium prices?
A1. Spot silver was down 0.6 per cent at $47.78 per ounce, platinum eased 0.6 per cent to $1,556.50 and palladium fell 2.5 per cent to $1,408.86.

Q2. Why is gold less expensive for other currency holders?
A2. U.S. dollar index eased after hitting a three-month high against its rivals, making gold less expensive for other currency holders.