Gold prices fell on Monday after hitting a three-week high earlier in the session as investors took profits and traders adjusted their expectations for Federal Reserve rate cuts, awaiting further news. data to assess the interest rate outlook.
Spot gold was down 0.6% at $2,695.79 an ounce by 0246 GMT.
U.S. gold futures fell 0.5% to $2,697.90.
Gold is under pressure as “some traders wanted to take profits around the $2,718 high given gold futures had their best week since the pandemic last week,” Matt Simpson said , senior analyst at City Index.
“I doubt we will see a continuation of last week's rise, given that the trading week is shorter due to the Thanksgiving holiday in the United States.
Traders see a 51% chance the Fed will cut rates by another 25 basis points in December, up from 62% last week, according to the CME's Fedwatch tool.
Rising interest rates, which make non-yielding assets like gold less attractive, could put further pressure on the metal.
Last week, some Fed policymakers expressed concern about a possible stagnation in inflation, advocating caution, while others stressed the need to continue rate cuts.
According to Yeap Jun Rong, market strategist at IG, less dovish signals from US politics and potential inflation surprises could support a hold on rates in December, and prospects of a rate cut could weigh on prices of gold.
Investors are awaiting the minutes of the November FOMC meeting, GDP data (first revision) and Consumer Price Index (PCE) figures this week.
Meanwhile, the dollar index fell 0.7%, making gold more attractive to holders of other currencies. Benchmark 10-year Treasury yields also fell. [USD/] [US/]
On the physical front, gold premiums in India fell last week as rising local prices cooled demand, while interest in gold in China and other Asian markets remained muted . [GOL/AS]
Spot silver fell 1% to $30.99 an ounce, platinum fell 0.3% to $960.85 and palladium slipped 0.6% to $1,003.21.
Related News :