Gold price today: Why is gold rate down? What to expect in November, December?

Gold rate today: Gold is having a tumultuous time on Wednesday as the bullion fell for a third straight session. This comes as international oil prices climbed, while investors turned their attention to incoming US inflation data for clues on the Federal Reserve's next policy move. Spot gold dipped 0.4 per cent to $4,140.33 per ounce. U.S. gold futures for December delivery fell 0.3 per cent to $4,162.80 per ounce. Spot silver fell 1.5 per cent to $58.57 per ounce, platinum dipped 0.6 per cent to $1,653.18 per ounce and palladium gained 0.6 per cent at $1,132.70 per ounce.

While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish the appeal of non-yielding bullion.

Gold Rate Predictions


"I think for a large part, a lot of traders are sitting on their hands ahead of the release of the CPI data later today, which could impact the direction of the US dollar, gold prices and everything else really pricing the dollar," said Fawad Razaqzada, market analyst at Forex.com.


Oil prices climbed on Wednesday after two vessels were struck in the Strait of Hormuz, and Iranian officials told Reuters they were deploying new tactics to target ships, as Tehran seeks to keep oil prices high and influence the US midterm elections.

"Once the US dollar pops out, we are very close to seeing the dollar potentially topping out. That's when gold is going to shine more brightly. I reckon that the metal could rise back towards the 4,500 area, 4,700 even in the later months of the year," Razaqzada added.

New York Fed President John Williams reaffirmed his view that the US central bank may need to raise rates once more this year in its bid to lower inflation. Markets see about a 22 per cent chance of a US rate hike this month and a 90 per cent probability of an increase in December, according to CME's FedWatch Tool.