Gold price: U.S gold rate futures fall big time. What to expect in coming months?

U.S. gold price futures for December delivery fell 0.4 per cent to $3,703 but spot gold was up 0.2 per cent at $3,668.34 per ounce on Thursday. This comes after gold price hit a record high of $3,707.40 on Wednesday, before closing 0.8 per cent down. The dollar pared recent gains and hovered near a two-month low, making gold less expensive for other currency holders. The benchmark 10-year Treasury yields also fell.

Gold Price Prediction

The dollar is resuming its weakness, which has helped to support gold prices ... the rate decision itself was a little bit on the dovish side, because the statement or the dot plots revealed that there will be two more rate cuts to come this year, said Fawad Razaqzada, market analyst at City Index and FOREX.com.


The Fed reduced rates by 25 basis points on Wednesday and indicated it will steadily lower borrowing costs for the rest of this year. Non-yielding bullion, considered a safe-haven asset during periods of geopolitical and economic uncertainty, tends to perform well in a low interest-rate environment.

Gold's bull run is still very much in place and we will very much see record highs likely to persist, independent analyst Ross Norman said.

Traders are currently pricing in a 90 per cent chance of another 25-basis point cut at the Fed's next meeting in October, according to the CME Group's FedWatch tool.

ANZ expects gold to outperform early in the easing cycle, the bank said in a note on Thursday. Demand for haven assets amid the challenging geopolitical backdrop is likely to boost investor demand, it said.

Spot silver rose 0.4 per cent to $41.84 per ounce, platinum gained 1.5 per cent to $1,383.60 and palladium was down 0.7 per cent at $1,146.55/oz.

FAQs

Q1. What are silver, platinum prices?
A1. Spot silver rose 0.4 per cent to $41.84 per ounce, platinum gained 1.5 per cent to $1,383.60 and palladium was down 0.7 per cent at $1,146.55/oz.

Q2. What is gold price prediction?
A2. ANZ expects gold to outperform early in the easing cycle, the bank said in a note on Thursday. Demand for haven assets amid the challenging geopolitical backdrop is likely to boost investor demand, it said.