Gold prices saw a slight decline on December 5, 2024, reflecting weak global cues amid a stronger dollar and mixed signals from major economies. As of today, gold is trading lower, with spot prices dropping by approximately $5 to $1,842 per ounce. This dip comes after a period of relative stability in gold prices, following a series of gains earlier in the week driven by geopolitical tensions and concerns about inflation.
Source:- bbc news
The primary factor contributing to the decline in gold prices is the strength of the U.S. dollar. A stronger dollar makes gold more expensive for holders of other currencies, reducing demand. Additionally, global economic data has been mixed, with some reports showing signs of economic resilience in major markets, which in turn dampened safe-haven demand for gold.
Source:- news 18
In the U.S., recent data on job growth and manufacturing activity indicated that the economy remains robust, suggesting that the Federal Reserve may maintain higher interest rates for a longer period. This prospect of higher rates further undermined gold’s appeal as a non-yielding asset. The potential for continued tightening in the U.S. and other economies led to a shift in investor focus, moving away from precious metals towards higher-yielding investments.
Meanwhile, in India, gold prices are also feeling the impact of global trends. The 10-gram gold price in major Indian cities like Mumbai and Delhi saw a slight decrease, moving in tandem with global markets. Despite this, Indian demand for gold, driven by weddings and festivals, remains a strong supportive factor.
Overall, the outlook for gold remains uncertain in the short term, with global economic factors and currency fluctuations continuing to drive price movements. Investors are advised to stay vigilant of developments in both the global economy and market sentiment.
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