Gold price forecast stay under pressure, trading close to $2,645 during Monday’s early Asian session. A strengthening US Dollar is weighing on the precious metal, even as geopolitical tensions provide some support for Gold’s traditional role as a safe-haven asset.
Gold Experiences Sharp Decline
In November, Gold prices dropped by 3%, marking the worst monthly loss since September 2023. One major driver was the rising strength of the US Dollar following Donald Trump’s win in the US Presidential election. This victory increased speculation that the Federal Reserve (Fed) might proceed cautiously with rate cuts, thus boosting the Greenback and dragging down USD-denominated assets like Gold.
Geopolitical Tensions Could Support Gold Prices
Despite its recent decline, Gold’s safe-haven appeal could help limit further losses. Escalating geopolitical conflicts, such as Russian and Syrian airstrikes on advancing rebels, highlight the ongoing global uncertainties. These uncertainties are key factors bolstering Gold’s demand as a reliable asset.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, highlighted that ongoing global uncertainties consistently fuel demand for gold as a safe-haven asset.
Key Data Releases in Focus
Traders are closely monitoring significant US economic indicators this week for further market direction. Forecasted to rise to 47.5 in November from 46.5 previously, the data may offer fresh insights into economic trends.
Looking ahead, the US Nonfarm Payrolls (NFP) report on Friday will also play a pivotal role in shaping Gold’s outlook for December.
Conclusion
Gold price forecast continue to face downward pressure amid a rebounding US Dollar, while geopolitical risks offer limited support. Investors are advised to keep a close eye on upcoming economic reports for clearer market signals.
For more in-depth insights on Gold trends, visit the Daily Gold Signal website. To explore daily updates on Gold prices, check out Daily Gold Update.
