Gold prices drop ahead of US data: Should investors buy now?

Gold prices traded within a narrow range on Wednesday, November 27, as investors awaited US inflation data to gauge the likelihood of a Federal Reserve rate cut in December. Spot gold was stable at $2,635.56 per ounce as of 0222 GMT, moving within a slim $9 per ounce range.

US gold futures saw a modest rise of 0.6% to $2,635.80 per ounce.

In India, 24-carat gold dropped by ₹1,310 to ₹7,740.3 per gram, while 22-carat gold was down ₹1,200 at ₹7,096.3 per gram, reflecting the global trend.

Key factors influencing gold

Kyle Rodda, a financial market analyst at Capital.com, highlighted the geopolitical backdrop influencing prices.

“Some selling pressure has emerged due to the ceasefire agreement between Israel and Lebanon,” he noted.

The US-France-brokered truce between Israel and Hezbollah took effect, easing some geopolitical tensions that had driven gold’s safe-haven appeal.

Rodda added, “In the long run, Trump’s trade war may be positive for gold due to rising debt loads and the prospect of dedollarization.

” Trade tensions remain a critical factor for gold, with President-elect Donald Trump’s tariff plans still a looming concern.

Meanwhile, investors are digesting mixed economic signals.

Federal Reserve officials have shown divisions over further rate cuts, although the CME Group’s FedWatch tool currently predicts a 63% chance of a 25-basis-point cut in December.

Jateen Trivedi, VP Research Analyst at LKP Securities, remarked that gold erased 2.5–3.0% of last week’s strong gains.

“Significant US data, including core PCE figures, GDP revisions, and initial jobless claims, will keep gold prices volatile in the short term,” he said.

Adding to the pressure, data revealed a sharp 43% year-on-year drop in China’s net gold imports via Hong Kong in October, signaling reduced demand from one of the world’s largest consumers.

Technical outlook

Gold is expected to trade in the range of $2,600 per ounce (₹75,000 per 10 grams) to $2,700 per ounce (₹77,000 per 10 grams) in the coming days, according to market analysts.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited, noted, “Gold’s movements remain volatile, with support at $2,600 per ounce as traders assess global developments and the trajectory of US monetary policy.”

Despite recent dips, the market remains focused on key US economic indicators, including the PCE Price Index and Federal Reserve meeting minutes,

Investors should monitor upcoming these closely, as these could shape the metal’s short-term trajectory.

Kunal Shah, Head of Commodities & Currency Research at Nirmal Bang, remains bullish on gold.

Shah believes that gold may dip to $2,620–$2,630 per ounce on COMEX, offering a buying opportunity for investors looking to accumulate more.

–With agencies inputs