Gold price today: The rates of gold and silver declined in the domestic futures market on Tuesday morning (November 4), as investors booked profits tracking gains in the US dollar amid fading hopes of further rate cuts by the US Federal Reserve this year. MCX Gold December futures were 0.42 per cent down at ₹1,20,894 per 10 grams at 9:10 am. MCX Silver December contracts were 0.48 per cent lower at ₹1,47,050 per kg at that time.
The dollar index rose by about 0.20 per cent to 100.05, its highest level in over three months, as expectations of another US Fed rate cut this year lose steam.
Gold is priced in the US dollar. A stronger US currency makes the yellow metal expensive in other currencies, weighing on its demand.
Weakening expectations of another Fed rate cut in December are supporting the US dollar. The US Fed in October cut interest rates by 25 basis points for the second time this year, but Chair Jerome Powell indicated there may not be another cut this year, dealing a blow to market expectations.
Reuters reported, quoting CME’s FedWatch Tool, “market participants now see a 65 per cent chance that the Fed will cut rates again in December, down from over 90 per cent before Powell’s remarks.”
(This is a developing story. Please check back for fresh updates.)
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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.
