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Gold posts worst monthly performance in over a year
Gold prices rose on Friday amid a weaker dollar and ongoing geopolitical tensions, but were still on track for their worst monthly performance since September 2023, weighed down by a sell-off that followed Donald Trump’s victory in the US presidential election.
Spot gold rose 0.8% to $2,660.67 an ounce but was set for a weekly decline of 2%, driven by a sharp decline earlier in the week.
US gold futures also rose 0.8% to $2,684.90.
Gold prices have fallen 3% so far in November in their worst monthly performance since September 2023 after Trump’s victory boosted the dollar earlier in the month and halted the bullion’s rally, sparking a sell-off.
The Israeli military said on Thursday it had spotted suspects arriving in several areas of southern Lebanon, describing it as a violation of a ceasefire with Hezbollah.
Rising geopolitical tensions are making investors turn to gold in hopes of benefiting from potential price increases, said Brian Lan of GoldSilver Central in Singapore, adding that “the slight weakness in the dollar has helped gold prices rise.”
Gold is often seen as a safe-haven investment during times of economic and geopolitical uncertainty, such as conflicts and trade wars.
The dollar index fell 0.2 percent, boosting gold’s appeal to holders of other currencies.
Prices have fallen about 3 percent this month, hitting a two-month low on Nov. 14, as the dollar strengthened after Trump’s election victory.
Economists believe the president-elect’s plans to impose tariffs will boost inflation, which could slow the Fed’s rate-easing cycle.
Key U.S. data due next week is expected to provide clues on the Fed’s rate cut expectations, including job openings and a jobs report.
