Gold rate today: Gold prices set for worst fall in one year

Gold prices gained on Friday, supported by a weaker greenback and geopolitical woes, but were on course for their worst monthly performance since September 2023 due to a dollar rally this month following Donald Trump's U.S. election victory, as per a report.

Spot gold climbed 0.7 per cent to $2,659.49 per ounce, as of 1201 GMT, but set for a weekly fall of about 2 per cent after a sharp. Earlier this week. U.S. gold futures also gained 0.8 per cent to $2,659.20, Reuters reported.

Bullion has declined 3 per cent so far in November, its worst monthly performance since September 2023, as traders expect the prospect of higher tariffs under Trump administration to keep interest rates higher for longer.


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The dollar index fell to its lowest point since November 12, but remains on track for a 2% rise in November.

Gold has seen a significant rise this year, and we are witnessing a sharp decline this month due to substantial profit-booking after Trump's victory and the rally in U.S. dollar following the election results, said Jigar Trivedi, a senior analyst at Reliance Securities.

Gold is often seen as a safe-haven asset during times of economic or political uncertainty, including trade wars, but higher rates increase the opportunity cost of holding non-yielding bullion.

"The Middle East concerns have been slightly off due to the ceasefire talk, but on the contrary Russia-Ukraine concerns are still prevailing in the market," said Ajay Kedia, director at Kedia Commodities, Mumbai.

Israel's military said on Thursday that an arrival of suspects was detected in several areas in southern Lebanon, and called it a violation of a ceasefire with Hezbollah.

Additionally, Russia unleashed its second big attack on Ukraine's energy infrastructure this month on Thursday.

Investors await major U.S. economic data releases next week, including job reports, for clues on the Federal Reserve's future rate cut outlook.

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Spot silver added 1.5 per cent to $30.70 per ounce, platinum gained 1.2 per cent to $942.25 and palladium advanced 1.2 per cent to $987.37, though all were set for monthly losses.

FAQs

Q1. How does Dollar stand?
A1. The dollar index fell to its lowest point since November 12, but remains on track for a 2 per cent rise in November.

Q2. Why is Gold important?
A2. Gold is often seen as a safe-haven asset during times of economic or political uncertainty, including trade wars.