Gold price today: Gold rate falls ahead of New Year. What to expect next year?

Gold price slipped from levels close to historic highs as investors booked profits and a market perception of reduced geopolitical risks curbed safe-haven ‌buying. Spot gold ‌was down 1.9 per cent at $4,448.23 an ounce after hitting a record $4,549.71 on Friday. U.S. gold futures ‌for February delivery lost 1.9 per cent to $4,467.90.

"This morning’s (gold) price decline, which ​follows record highs, is attributable mainly to traders taking profits ahead of the ‌year-end," said ‍ActivTrades analyst Ricardo Evangelista.

Bullion has risen about 72 per cent this year, rallying on factors such as softer U.S. monetary policy, dollar weakness, geopolitical friction and robust central bank purchases.


U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine.

Markets ‍are looking ⁠out for the release ⁠of the Fed's December meeting minutes, due on Tuesday, for clues on the interest rate outlook. Traders are pricing in two rate cuts next year. Non-yielding assets tend to do well when interest rates are low.

"Gold prices are trading at an elevated premium, and downside risks could emerge if a hawkish pivot by the Federal Reserve were to surprise and/or large ETF outflows were to affect the market," UBS analysts said in a note.

FAQs

Q1. What are current gold prices?

A1. Spot gold ‌was down 1.9 per cent at $4,448.23 an ounce after hitting a record $4,549.71 on Friday. U.S. gold futures ‌for February delivery lost 1.9 per cent to $4,467.90.


Q2. Why has gold price gone up this year?

A2. Gold has risen about 72 per cent this year, rallying on factors such as softer U.S. monetary policy, dollar weakness, geopolitical friction and robust central bank purchases.