Gold price prediction: Gold rate futures for December rise. What to expect?

Gold price on Tuesday soared after Spot gold rose 1 per cent to $3,784.01 per ounce, after hitting a fresh record high of $3,790.82, earlier in the session. U.S. gold futures for December delivery rose 1.1 per cent to $3,817.70. Gold rate is bolstered by increased expectations of further U.S. rate cuts, as investors awaited Federal Reserve Chair Jerome Powell's speech later in the day for further policy cues.

New Fed Governor Stephen Miran called for aggressive rate cuts on Monday, adding that the Fed was misreading how tight it has set monetary policy and will put the job market at risk, a view countered in remarks by three of his colleagues who feel the central bank needs to remain cautious about inflation.

"Miran’s dovish posture certainly heightens the expectation of greater rate cuts as it seems the U.S. administration is keen to push this, and this is a gold-positive outcome," said independent analyst Ross Norman.


According to the CME FedWatch tool, investors see two 25-basis point cuts, one each in October and December, with a 90 per cent and 73 per cent probability respectively.

Non-yielding gold tends to do well in a low-interest-rate environment.

"Gold is seeing good demand from institutional investors who are perhaps rotating out of equities as those markets peak, coupled with good demand from India," Norman added.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60 per cent to 1,000.57 tons, a more than three-year high on Monday from Friday.

Spot silver rose 0.4 per cent to $44.24 per ounce, hovering near a 14-year high. Platinum was up 1.5 per cent at $1,437.56 and palladium rose 1.9 per cent to $1,201.

FAQs

Q1. What is current price of silver?
A1. Spot silver rose 0.4 per cent to $44.24 per ounce, hovering near a 14-year high. Platinum was up 1.5 per cent at $1,437.56 and palladium rose 1.9 per cent to $1,201.

Q2. How is gold performing?
A2. Spot gold rose 1 per cent to $3,784.01 per ounce, after hitting a fresh record high of $3,790.82, earlier in the session. U.S. gold futures for December delivery rose 1.1 per cent to $3,817.70.