Gold prices took a sharp downturn on Friday, slipping below $4,005 per ounce, as the U.S. dollar strengthened and investor sentiment weakened amid uncertainty over further Federal Reserve interest rate cuts.
According to market data, spot gold fell 0.5% to $4,004.37 per ounce, while U.S. gold futures for December delivery held steady at $4,016.30 per ounce. Despite the dip, gold remains up nearly 4% for the month, marking its third consecutive monthly gain.
Dollar Strength Puts Pressure on Gold
The U.S. dollar index hovered near a three-month high, making dollar-priced gold more expensive for foreign investors and thereby pressuring demand.
Analyst Ricardo Evangelista of ActivTrades said the recent remarks from Federal Reserve Chair Jerome Powell have turned sentiment more hawkish, dampening expectations of another rate cut in December.
“Gold is under pressure as the dollar has been strengthening on the back of those hawkish remarks,” Evangelista said, adding that markets had “taken a December rate cut for granted,” but are now re-evaluating.
Fed Policy Outlook
On Wednesday, the Federal Reserve cut rates by 25 basis points for the second time this year, setting the benchmark rate between 3.75% and 4.00%. However, following Powell’s cautious tone, traders scaled back expectations for another rate cut.
The CME FedWatch tool shows a 67% probability of a December cut, down from 91% just a week ago, suggesting growing uncertainty in monetary policy outlook.
Global Factors Affecting Gold
Safe-haven demand for gold has also been tempered by a wave of optimism surrounding U.S.–China trade talks.
U.S. President Donald Trump announced that Washington would reduce tariffs in exchange for Beijing curbing the illicit fentanyl trade, resuming soybean imports, and ensuring a steady flow of rare earth exports — developments that eased trade tensions and reduced gold’s defensive appeal.
However, analysts caution that geopolitical risks — including ongoing conflicts in Ukraine, tensions in the Middle East, and strategic frictions between the U.S. and China — continue to support gold prices in the medium to long term.
Other Precious Metals
- Silver: down 0.2% at $48.82 per ounce
- Platinum: fell 1.5% to $1,586.64 per ounce
- Palladium: slipped 0.4% to $1,438.72 per ounce
Outlook for November–December
Analysts predict that gold will likely remain volatile in the short term as traders respond to shifting Fed expectations and global economic cues. If the dollar continues to strengthen and rate cuts are delayed, gold could consolidate near the $4,000 mark.
However, in the medium term, persistent geopolitical risks, inflation uncertainty, and potential monetary easing in early 2026 could keep the bullish trend intact for gold investors.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
