Gold prices are hovering near a one-month low on Tuesday, November 12; This suggests that investors are being cautious as they await key US economic data and comments from Federal Reserve officials. Spot gold fell 0.1% to $2,617.15 per ounce as of 04:36 GMT, its lowest level since October 10.

U.S. gold futures were slightly higher, rising 0.2% to $2,623.30 an ounce.

in india, gold prices was kept constant.

The price of 24 carat gold was ₹ 7,893.3 per gram, while the price of 22 carat gold was ₹ 7,237.3 per gram.

Last week, 24 carat gold gained 1.24% in value, but the metal decreased by 2.14% monthly.

Dollar rise and inflation concerns

The US dollar, which has strengthened in recent days, remained near its highest level in four months. Investors continue to prefer the dollar in light of the economic policies envisaged under President-elect Donald Trump.

The rise of the dollar has made gold less attractive to those who hold other currencies.

“Gold succumbed to the US dollar’s purple zone post-election. Trump’s policies appear to be a boon for the dollar, and this, combined with potential inflationary pressures, could slow the Fed’s rate-cutting trajectory in 2025.” KCM Trade Chief Market Analyst Tim Waterer said in the Reuters report.

“Trump’s expansion plans and corporate tax cuts may put upward pressure on inflation, limiting the Federal Reserve’s ability to ease monetary policy further. This continues to support the dollar and puts pressure on it,” said Renisha Chainani, Augmont – Gold for All Research Manager. . Gold prices.”

Gold has traditionally been seen as a hedge against inflation.

However, high interest rates reduce its attractiveness as a non-returning asset.

Investors are closely monitoring upcoming U.S. economic reports, including the October Consumer Price Index (CPI) to be released on Wednesday, November 13, the Producer Price Index (PPI) to be released on Thursday, November 14, and retail sales data to be released on Friday, November 15.

These numbers, along with statements from Fed officials like Jerome Powell, could provide more clues about the future path of interest rates.

Outlook: A mixed path for gold

While gold faces pressure from a strong US dollar and rising bond yields, analysts remain cautiously optimistic about gold’s long-term outlook.

According to Waterer, “There is still a fundamental path ahead for gold, but this will likely require the dollar to lose some momentum.”

He added that a soft inflation report could increase the likelihood of a rate cut in December and provide some reprieve to gold prices.

Technical analysts are also watching important support levels.

Wang Tao of Reuters suggests that spot gold could retest the $2,610 per ounce level, and a break below this level could lead to $2,566-$2,588 per ounce.

LKP Securities Vice President Research Analyst Jateen Trivedi believes that the corrective trend in gold may continue as long as prices remain below the critical resistance level of $2,750 per ounce.

The gold market in India remains relatively resilient despite global pressure on prices. “Gold is currently supported at 75,020-74,750 Indian rupees per 10 grams with resistance at 75,580-75,810 Indian rupees per 10 grams,” said Rahul Kalantri, Vice President, Commodities, Mehta Equities.