Gold price prediction in December: Will Gold rate fall big next month? Here is what experts are saying

Gold rate in December will witness interesting movement as the U.S Federal Reserve is all set to announce whether the America's Central Banks will cut interest rate or not. Gold price on Wednesday rose more than 1 per cent as investors sought safe-haven assets. Spot gold was up 1.1 per cent at $4,112.50 per ounce. U.S. gold futures for December delivery gained 1.1 per cent to $4,112.90 per ounce.

Investors are watching for minutes from the Federal Reserve's October meeting later in the day and the delayed September jobs report, due on Thursday. Economists polled by Reuters expect the September employment report to show 50,000 jobs were added during the month.

"After rebounding from the psychological $4,000 level in the previous session, gold is slightly glittering this morning amid the cautious mood," said Lukman Otunuga, senior research analyst at FXTM.


"Should incoming U.S. data support the case for lower rates, gold prices may push toward $4,130 and $4,200. However, more hawkish remarks by Fed speakers, coupled with stronger-than-expected data could drag prices back toward $4,000 as traders slash expectations around lower U.S. rates," Otunuga said.

Separately, data showed on Tuesday that the number of Americans receiving unemployment benefits stood at a two-month high in mid-October. Minutes from the Fed's meeting are expected to shed light on divisions among policymakers over how to respond to inflation and shifting labour trends.

Traders cut their bets for a rate cut next month to just over a 46 per cent chance from 63 per cent last week, the CME FedWatch tool showed.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty.

Weak labour data could spur a gold rally, while stronger data and signs of labour market resilience may pressure prices and lead to a potential break below the key psychological support of $4,000 an ounce, said Zain Vawda, analyst at MarketPulse by OANDA.

Spot silver rose 3.1 per cent to $52.27 per ounce, platinum added 2.1 per cent to $1,566.32, and palladium climbed 2.4 per cent to $1,433.46.

FAQs

Q1. What is current silver price?

A1. Spot silver rose 3.1 per cent to $52.27 per ounce, platinum added 2.1 per cent to $1,566.32, and palladium climbed 2.4 per cent to $1,433.46.

Q2. What are current gold prices?

A2. Spot gold was up 1.1 per cent at $4,112.50 per ounce. U.S. gold futures for December delivery gained 1.1 per cent to $4,112.90 per ounce.