Gold prices halted a four-session rally to fall on Monday, pressured by a firmer U.S. dollar and profit-taking, as investors await key U.S. economic data for guidance on the outlook monetary policy of the Federal Reserve.
Spot gold was down 0.7 percent at $2,636.38 an ounce, as of 2.0204 GMT.
U.S. gold futures were down 0.8% at $2,658.80.
“The yellow metal has faced profit-taking lately as market participants shed some of the geopolitical risk premium, alongside the strength of the US dollar, said Yeap Jun Rong, strategist at market at IG.
The dollar index gained 0.5%, making bullion more expensive for holders of other currencies. [USD/]
Key U.S. data due this week includes job openings, the ADP employment report and the payroll report. Few Fed officials are scheduled to speak this week, including Fed Chairman Jerome Powell on Wednesday.
According to CME Group's FedWatch tool, markets currently see a 65.4% chance that rates will be cut by 25 basis points in December.
“If the Fed were to pave a clearer path to potentially holding rates on hold through 2025, we could likely see gold prices weigh more heavily,” Mr. Rong said.
Higher rates blunt the appeal of non-yielding bullion.
Gold prices fell more than 3% in November to record their worst monthly performance since September 2023, amid the prospect of higher tariffs under the new Donald Trump administration to keep interest rates down at a higher level for a longer time was on the horizon.
On Saturday, Trump demanded that BRICS countries commit not to create a new currency or support another currency that would replace the US dollar, or face 100% tariffs.
Among other metals, spot silver lost 0.7% to $30.39 an ounce, platinum fell 0.2% to $944.20 and palladium fell 0.3% to $975.44.
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