Gold price today: Why is gold rate down to lowest since November 4? Check latest predictions

Gold price declined in global markets as spot gold rate slipped below USD 3,950 an ounce, down by USD 39.93, or 1 per cent. Among other metals, spot silver fell 1 per cent to $51.16 per ounce and spot palladium dropped 0.6 per cent to $1,021.25 after hitting its highest level since October 22 on Wednesday.

Spot gold was 1 per cent to $3,948.82 per ounce, having touched its lowest level since November 4 earlier in the session. US gold futures for December delivery fell 1.1 per cent to $3,954.50 per ounce.

Why is Gold Price Down?


Gold prices fell for a third straight session to hit a more than one-week low on Thursday, weighed by a robust US dollar, expectations of further monetary tightening by the Federal Reserve and hawkish signals from policymakers.

Gold rate fell amid a strong US dollar, adding pressure on the bullion, Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said, PTI reported.

Gold retreated to test key support around $3,970, as sellers focused on persistent US inflation and hawkish comments from several Fed officials, said Ole Hansen head of commodity strategy at Saxo Bank, as per Reuters report.

Gold Rate Prediction

Markets now see an 91 per cent chance of a 25-basis-point rate hike in December, while the probability of a larger 50-basis-point move rose to 10 per cent from zero before the inflation data, according to CME's FedWatch tool.

Although gold is seen as an inflation hedge, higher interest rates tend to diminish its appeal as bullion pays no interest. A stronger dollar also puts pressure on gold as it becomes more expensive for buyers in other currencies, Reuters reported.

Investors now await Friday's US producer inflation data for further signals on the interest-rate outlook.

Meanwhile, Bank of England policymaker Megan Greene said on Wednesday it was appropriate to "proactively tighten our monetary policy stance" to ward against the risk of wage growth getting stuck at higher levels and firms passing those costs on.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said that if the dollar index decisively breaches the stiff resistance around 103, it could rise to 104.50, intensifying downside pressure on the precious metal, PTI reported.

The US dollar index traded lower at 102.88 on Thursday.