Gold price, silver rate today: Why are gold rate, silver price down on Thursday? What to expect in November?

Gold price, silver rate fell on Thursday. Both gold and silver are on track for its second straight monthly decline after spot gold slid to $4,035.28 per ounce. US gold futures for December delivery fell 0.1 per cent to $4,047.10 per ounce. Spot silver too slipped 1.9 per cent to $52.9341 per ounce. Gold has been witnessing volatile sessions in recent weeks making it extremely tricky to predict upcoming prices.

Platinum dropped 2.9 per cent to $1,493.71 and palladium slid 1 per cent to $1,000.91. All metals were headed for a second straight monthly decline.

Why is Gold Rate Down?


Gold may be dragged back into sub-$4,000 levels if the PCE figures exceed market expectations, further paving the way for a December rate hike, said Han Tan, chief market analyst at Bybit, as per a Reuters report.

Gold prices slid on Thursday as sticky inflation fueled bets of a potential interest rate hike by the US Federal reserve later this year, while investors awaited a US inflation report for insight into the central bank's next policy moves.

Gold Price Prediction

Markets are still wary about another potential spike in geopolitical tensions following the US midterm election, Tan said. If oil benchmarks revisit $120 and beyond, amplifying inflationary pressures that invite further monetary policy tightening, gold would likely post a fresh year-to-date low, Tan said.

The Fed expectedly kept rates unchanged on Wednesday, deferring changes to borrowing costs until after next week's midterm elections while it awaits more inflation data, keeping a December hike in play.

Factors to Impact Gold Price

Traders are still pricing in about an 90 per cent chance of a rate hike in December, according to the CME's FedWatch Tool.

Meanwhile, the European Central Bank is expected to hold rates later on Thursday, though the decision could be overshadowed by turmoil in France's bond market. Higher rates increase the opportunity cost of holding non-yielding gold.

International Oil prices fell on Thursday as hopes for peace talks rekindled after US Vice President JD Vance wrote to Iranian Security Council chief Mohsen Rezaei.