Spot Gold gained on Monday, reversing a loss from Friday, but a firmer US Dollar was limiting upside for the yellow metal.
“There’s a lack of upside momentum (in gold) due to some technical factors and the dollar remains pretty resilient, so that has a negative impact on gold,” OANDA senior market analyst Kelvin Wong was quoted as saying by Reuters.
The US Dollar Index held close to a three-month high. A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
The Federal Reserve lowered its federal funds rate target range by 25 basis points to 3.75%-4.00% at its October meeting, in line with market consensus. This way, borrowing costs were brought to their lowest level since 2022.
Yet, Fed Chair Jerome Powell said at the regular press conference that a December rate cut was not a foregone conclusion.
As a result, market players pared bets of another rate cut by the Fed in December.
Markets are now pricing in about a 67% chance of a 25 basis point Fed rate cut in December, compared to a 94% chance a week earlier.
Spot Gold was last up 0.49% on the day to trade at $4,022.34 per troy ounce.
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