Gold Prices Dip; Worst Weekly Performance in Three Years Amid Dollar Surge

Keywords ; Gold prices, spot gold, US dollar, Federal Reserve, interest rates, Donald Trump, India gold rates

Gold Prices Witness Significant Decline Amid Stronger US Dollar

Gold prices experienced a slight dip on Friday, November 15, capping off their worst week in over three years. Spot gold was trading at $2,562.61 per ounce, down 0.1%, with a weekly decline of more than 4%. US gold futures also slipped by 0.2%, standing at $2,567.10 per ounce.

Key Movements in Gold Prices

• Gold fell over $220 from its record high last month, hitting a two-month low earlier this week.
• In India, the price of 10 grams of 24-carat gold in Delhi dropped to ₹75,813, marking a decline of ₹1,200 from previous rates.

Factors Driving the Decline

1. Stronger US Dollar:
   The dollar gained strength following Donald Trump’s election victory, as market participants expected policies favoring economic growth. A stronger dollar typically makes gold more expensive for holders of other currencies, reducing demand.
2. Federal Reserve Interest Rate Expectations:
   Speculation about the Federal Reserve’s future interest rate decisions has impacted gold’s appeal. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold.

Outlook

Gold, often viewed as a safe-haven asset, faces pressure from the strong dollar and evolving monetary policy expectations. Analysts suggest that any change in Federal Reserve policy or geopolitical events could influence price trends in the coming weeks.

For now, investors are closely monitoring economic indicators and the Fed’s guidance on interest rates, as they remain critical to shaping the trajectory of gold prices globally.

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