Gold price today: The rates of gold crashed by a per cent on the MCX on Monday (November 24) morning amid fading expectations of another US Fed rate cut in December and easing geopolitical tensions. The firm dollar index also exerted pressure on gold prices. MCX Gold December futures traded 1 per cent lower at ₹1,22,950 per 10 grams, while MCX Silver December futures were 0.61 per cent down at ₹1,53,209 per kg at that time.
Why are gold prices falling?
Gold prices lack a fresh positive trigger to sustain their gains. The dwindling prospects of a US Fed rate cut next week are one of the major factors behind the recent correction in gold prices.
The latest data from the US job market has poured cold water on the prospects of a 25 basis point rate cut by the US Federal Reserve next month.
As Reuters reported, a “US Labor Department report showed on Thursday that September nonfarm payrolls increased by 1,19,000, more than double the estimated increase of 50,000.”
The strong US job growth data shot up the dollar to a near six-month high on Friday. The dollar index hovered above the 100 mark, capping the gains for gold.
Another major factor behind the fall in gold prices is easing geopolitical tensions. According to a Hindustan Times (HT) report, US President Donald Trump’s proposal to halt Ukraine’s war with Russia is witnessing good progress.
HT quoted the head of Ukraine’s delegation Andriy Yermak, telling reporters the US and Ukrainian sides had made “very good progress”, and were “moving forward to the just and lasting peace the Ukrainian people deserve”.
(This is a developing story. Please check back for fresh updates.)
Read all market-related news
Read more stories by
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.