Spot Gold eased on Monday, as the US Dollar held close to a six-month high, while investors weighed the Federal Reserve’s interest rate outlook.
A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
“The dollar index is up near six-month highs, it’s above 100 and if it continues to trade above 100, then there will be further pressure on gold prices,” Jigar Trivedi, senior research analyst at Reliance Securities, was quoted as saying by Reuters.
“Next three to five weeks will see a flattish to negative undertone in gold as there is no major significant support coming for the bulls in the absence of geopolitical tensions,” Trivedi said.
Markets are now pricing in about a 70% chance of a 25 basis point Fed rate cut in December, compared to a 74% chance in the prior trading session.
The probability of rate cuts had risen to 74% from about 35% on Friday after dovish remarks by New York Fed President John Williams.
At the same time, Dallas Federal Reserve President Lorie Logan called for keeping borrowing costs on hold “for a time”.
Spot Gold was last little changed on the day to trade at $4,063.73 per troy ounce.
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