Gold price falls significantly in November – Commerzbank

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In November, the Gold price recorded its sharpest monthly decline in more than a year, falling by 3.7%, Commerzbank’s commodity analyst Carsten Fritsch notes.


Gold ETFs recorded outflows

“However, this was preceded by four months of stronger increases in some cases. In addition, the fall in November started from a record level at the end of October. The price decline primarily occurred in the first half of the month because the US dollar appreciated significantly following Donald Trump's election victory.”


“This was based on the expectation that inflation in the US would rise due to the expected policies of the US president-elect, probably prompting the US Federal Reserve to adopt a more restrictive monetary policy. However, this is not entirely certain. The Gold price recovered somewhat in the second half of November due to increasing geopolitical risks.”


“The Gold ETFs tracked by Bloomberg recorded net outflows of 27 tons in November for the first time in six months. Compared to the outflows of 114 tons following Trump's first election victory in November 2016, however, these were still limited.”


 




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