The prices of precious metals such as gold and silver have ended November in the red amid a strengthening U.S. dollar and as global demand continues to weaken.
For the month, the price of gold fell 4%, while silver’s price decreased 9%. Analysts say the main reason for the pullback is that the U.S. dollar has strengthened since Donald Trump’s election victory, which is contributing to bearish sentiment towards metals.
Prior to November, the price of gold was trading at an all-time high and was on the cusp of trading above $3,000 an ounce for the first time. Silver’s price, while not at an all-time high, was up more than 30% on the year and heading for its best annual performance in more than a decade.
Base Metals Fall Too
Precious metals weren’t the only commodities to slump in November. Data from the London Metal Exchange (LME) shows that base metals also declined, with copper falling 5.75% and aluminum prices sliding 2.15% lower.
Analysts say a sharp rise in the U.S. dollar since Donald Trump won the U.S. election on November 5 and weak demand in China are exerting downward pressure on metal prices. President-elect Donald Trump’s proposed tariffs of as much as 25% on China, Mexico and Canada aren’t helping sentiment either. China and Canada are two of the world’s biggest metal extractors and exporters.
Despite the November pullback, U.S. investment bank Goldman Sachs ($GS) recently named gold its top commodity pick of 2025 and reiterated that it expects the price of gold to reach $3,000 an ounce next year.
Is the GLD ETF a Buy?
The SPDR Gold Shares ($GLD) exchange-traded fund (ETF), which tracks the price of gold bullion, has risen 5% in the last three months. That’s a slowdown from earlier this year when the price of gold was trending upwards to all-time highs.
