Gold prices declined in November 2024 due to several economic and geopolitical factors. A significant driver was the strength of the U.S. dollar, which made gold more expensive for international investors holding other currencies. Additionally, investors anticipated a potential interest rate cut by the Federal Reserve, which created a sense of uncertainty in the gold market.
This trend was also influenced by caution among investors ahead of the U.S. presidential elections, as some temporarily shifted away from gold as a safe-haven asset. Moreover, high U.S. bond yields continued to add pressure on gold prices by providing investors with alternative returns.
In summary, the primary reasons behind gold's price decline in November included the strong dollar, possible changes in interest rates, and shifts in investor sentiment amidst global economic stability
The main reason for the fall in the price of gold at the end of 2024 was the election of President Trump, which led to a rise in the value of the dollar as investors anticipated US economic growth, given Trump's aggressive and protectionist economic policy. But also because of a rise in interest rates via the FED's inflation control policy. There is therefore an arbitrage opportunity in terms of yield for offensive or moderate investors, who will tend to abandon gold in the short term in favour of these other promising niches.
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