Gold rate today: After rising for three straight months, gold prices in India registered around 2.60 per cent dip in November 2024. This pullback in the precious yellow metal was driven by the announcement of a ceasefire agreement between Israel and Hezbollah and the rising US dollar rates. However, commodity market experts believe that renewed tension in the Russia-Ukraine war, Israel-Hezbollah accusing each other of the ceasefire violation and wedding season in India are expected to fule gold prices. They said that MCX gold rates may touch ₹78,800 per 10 gm mark as the outlook for the precious metal is positive in the near term.
Escalation in the Russia-Ukraine War
Highlighting the reasons that triggered selling pressure in gold prices this month, Sugandha Sachdeva, Founder of SS WealthStreet, said, “After a three-month rally, gold prices posted a decline of 2.60 per cent for the month at the domestic markets, erasing some of the geopolitical risk premium. This pullback was largely driven by the announcement of a ceasefire agreement between Israel and Hezbollah and the broader strength in the US Dollar Index following Donald Trump’s victory in the US Presidential elections.”
US Fed rate cut in focus
Regarding expectations from the US Fed meeting in December, Sugandha Sachdeva said, “Economic data for the week showed the US economy growing by 2.8% in Q3, which is in line with expectations. Meanwhile, inflation, as measured by the PCE Index, rose 2.3% YoY, slightly above the previous month’s 2.1%. While these figures have not entirely ruled out the possibility of a 25 bps rate cut at the US Fed’s December meeting, the resilience of the US economy has cast doubt on further rate cuts in 2025, which is weighing on gold prices.”
Gold price outlook
Expecting a rebound in gold prices, the SS WealthStreet expert said, “The escalating tensions between Russia and Ukraine reignited safe-haven demand for gold towards the end of the week, thereby trimming weekly losses. Russia warned of a broader escalation in response to Ukraine’s use of Western-made long-range missiles, adding a layer of geopolitical uncertainty. Additionally, the dollar index’s drift to a two-week low further supported gold prices.”