Gold rises but heads for biggest monthly drop in more than a year

Gold bars

Gold prices rose on Friday, but remain on track for their largest monthly drop in over a year, driven by a stronger US dollar following Donald Trump's victory in the presidential election.

Gold futures for December delivery rose by 0.8%, or $21.6, to $2,661.5 per ounce as of 11:07 am KSA time. Spot gold added 0.6% to $2,656.7 per ounce.

Silver futures for December delivery climbed 2.15% to $30.76 per ounce, with spot palladium rising 1.15%, reaching $941.95 per ounce.

Gold is heading for a weekly loss of 1.92% and a monthly decline exceeding 4%. The drop is attributed to the strengthening dollar in the aftermath of Trump's election as the next US president.

Despite recent losses, gold prices rebounded during today's session as geopolitical tensions resurfaced Russia launched a second major attack on Ukraine's energy infrastructure this month on Nov. 28. The Israeli Air Force struck a facility in southern Lebanon used by Hezbollah to store medium-range missiles, amid mutual accusations of violating the ceasefire agreement.

These renewed geopolitical risks have provided support for safe-haven assets like gold, offsetting some of the downward pressure from a stronger dollar.