Gold price rate today shows that gold traded below the $4000-per-ounce mark as the U.S. dollar remained strong. Investors are closely monitoring U.S. employment data, inflation trends, and policy signals to assess the gold price forecast for the coming weeks. Market analysts believe that a combination of factors — including a strong U.S. dollar, easing trade tensions, and mixed signals from the Federal Reserve — are shaping the direction of gold prices.

Speculation is growing that a reduced likelihood of a U.S. Federal Reserve rate cut in December, coupled with improving U.S.–China trade relations, could put downward pressure on gold prices. Last week, U.S. President Donald Trump stated that he had agreed to reduce tariffs on China in exchange for concessions from Beijing.

As a result, spot gold fell by 0.8% to $3,970.39 per ounce at 06:25 GMT, while U.S. gold futures for December delivery slipped by nearly 1% to $3,979.30 per ounce.

Tim Waterer, Chief Market Analyst at KCM Trade, stated that a stronger and more stable U.S. dollar is putting downward pressure on gold prices. Traders are now reassessing the likelihood of another rate cut before the end of the year as the U.S. Federal Reserve implemented its second interest rate cut of the year last week. However, Fed Chair Jerome Powell noted that another rate reduction in 2025 is not guaranteed.

Federal Reserve officials currently hold mixed views on the state of the economy, and this debate is expected to intensify ahead of the next policy meeting — particularly as the release of some key economic data has been delayed due to the federal government shutdown.

Gold prices remain highly volatile, as they are influenced by a wide range of global economic factors. This means that short-term gains are not guaranteed. However, for those looking to invest with a long-term perspective, gold continues to be considered a strong and safe investment option. According to Morgan Stanley, gold prices could reach as high as $4,500 per ounce by mid-2026, reflecting continued investor confidence in the metal’s long-term value.

“Gold should not be seen as a driver of supercharged return- it’s there to act primarily as a stabilizer in a diversified portfolio,” explained Alex Tsepaev, Chief strategy officer of B2PRIME Group.

 
Credit: Independent News Pakistan (INP)