The price of gold in the international market has dropped by 1%. The decline comes as the US dollar strengthens to a three-month high.
In the latest trading, gold lost 1.12%, or $44.66. At the time of reporting, the price of gold stands at $3,956 per ounce.
The stronger US dollar has made buying gold more expensive for holders of other currencies. This has reduced demand, pushing gold prices lower.
Last week, the US Federal Reserve cut interest rates, but Fed Chair Jerome Powell signaled that this would likely be the final cut for the year. Traders now estimate only a 71% chance of another rate cut at the Fed’s December 9–10 meeting, down from 90% a week ago.
Gold prices usually rise when interest rates are low. This year, gold has already gained 53% in value.
