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 sell-off earlier this week. U.S. gold futures also gained 0.8 per cent to $2,659.20.
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.
The dollar index (.DXY), opens new tab fell to its lowest point since Nov. 12, but remains on track for a 2 per cent 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.
Eurozone inflation edges up as price growth in services remains high.
Gold prices set for biggest monthly decline in over one year
FE Team | Published: November 29, 2024 23:45:28
Gold prices set for biggest monthly decline in over one year
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