Gold Prices Gain on Friday, but Set for Worst Monthly Loss Since September
Gold Prices Climb 0.5% to $2,652.71 per Ounce
Spot gold climbed 0.5% to $2,652.71 per ounce, as of 1:40 pm ET (18:40 GMT) on Friday, boosted by a drop in the dollar and persistent geopolitical tensions. However, bullion was still set for its worst monthly loss since September last year after a post-election sell-off driven by Donald Trump’s win.
Gold Prices Drop 3% in November, Worst Monthly Slide Since September 2023
Gold has dropped 3% so far this month, its worst monthly slide since September 2023, as "Trump euphoria" lifted the dollar earlier this month and stalled gold’s rally, triggering a post-election sell-off.
Dollar Index Falls to Lowest in Over Two Weeks
The dollar index fell to its lowest in over two weeks, but remains on track for a 2% rise in November as Trump’s November 5 win fueled expectations of big fiscal spending, higher tariffs, and tighter borders.
Geopolitical Tensions and Fed Rate Cuts Support Gold
Gold, buoyed by geopolitical tensions and Federal Reserve interest rate cuts this year, now faces pressure as higher tariffs could stoke inflation and lead the Fed to adopt a cautious approach to further rate cuts.
Uncertainty Surrounds Trump’s Pledged Tariffs
"It is uncertain as of now, how Trump’s pledged tariffs will play out," said Jim Wyckoff, a senior market analyst at Kitco Metals.
Gold as a Safe-Haven Asset
However, "the uncertainty of the matter, the tariffs that could prompt a slowdown in economic growth could actually be beneficial for the gold market from a safe-haven basis." Bullion is traditionally seen as a safe investment during economic and geopolitical uncertainties and tends to thrive in a lower interest rate environment.
Persistent Global Uncertainties Drive Demand for Gold
"Persistent global uncertainties continue to drive demand for gold as a safe-haven asset," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
Tensions in Middle East and Ukraine Contribute to Gold’s Rally
On Thursday, Israel’s military reported suspects in southern Lebanon, calling it a ceasefire breach with Hezbollah, while Russia launched its second major attack on Ukraine’s energy infrastructure this month.
Silver, Platinum, and Palladium Prices
Spot silver added 0.9% to $30.54 per ounce, platinum gained 1.7% to $946.83, and palladium rose 0.7% to $981.63, although they were all set for monthly losses.
Conclusion
Gold prices gained on Friday, but are still set for their worst monthly loss since September last year. The dollar’s drop and geopolitical tensions supported gold prices, but the uncertainty surrounding Trump’s pledged tariffs and the potential impact on the economy remains a concern.
FAQs
Q: What was the price of gold on Friday?
A: Spot gold climbed 0.5% to $2,652.71 per ounce.
Q: What was the move in the dollar index?
A: The dollar index fell to its lowest in over two weeks.
Q: How has gold performed this month?
A: Gold has dropped 3% so far this month, its worst monthly slide since September 2023.
Q: What is driving the demand for gold?
A: Persistent global uncertainties are driving demand for gold as a safe-haven asset.
