Gold Prices Drop Sharply in Global Markets

Darwin, 15 November –

Gold prices in the global market fell sharply after the U.S. Federal Reserve signaled a more hawkish stance, triggering turbulence across international markets. The resulting widespread sell-off dragged down gold prices by as much as 3 percent in a single day, according to Reuters.

On Friday (14 November), spot gold declined 1.9 percent to settle at $4,092.72 per ounce. Despite the steep intraday fall, gold prices still posted an overall 2.3 percent gain for the week.

Meanwhile, U.S. gold futures for December delivery also suffered a major decline, dropping 2.4 percent to $4,094.20 per ounce by the end of the trading day.

David Meger, Director of Metals Trading at High Ridge Futures, said the gold and silver markets came under pressure as expectations for a December rate cut weakened.

Global stock markets, including those in the United States, also plunged following the Fed’s signals. Even though the longest government shutdown has ended, the lack of fresh economic data has pushed markets into deeper uncertainty.

Investors previously hoped that weaker economic indicators would pave the way for the Federal Reserve to cut interest rates in December. However, recent cautious remarks from several Fed policymakers have dampened those expectations.

According to the CME Group’s FedWatch tool, the probability of a 25-basis-point rate cut next month fell from 50% earlier in the week to around 46%.

Fawad Razaqzada, analyst at Forex.com, explained that during broad market sell-offs, margin calls force traders to liquidate all assets, which is why gold prices fell despite being considered a safe haven.

Physical demand for gold in major Asian markets remained low throughout the week. Among other precious metals, spot silver dropped 2.8% to $50.84 per ounce, though it still showed a 5.2% weekly increase. Platinum fell 2.1% to $1,547.30, and palladium decreased 2.8% to $1,387.25, yet both metals remained higher on a weekly basis.

In Bangladesh’s domestic market, gold prices have been revised as follows (per bhori, 11.664 grams):

22-carat gold: Tk 213,719

21-carat gold: Tk 204,003

18-carat gold: Tk 174,855

Traditional method gold: Tk 145,520