The probability of a Fed rate cut next month inched down to 69 per cent on Monday, after jumping to 74 per cent in the previous session, according to the CME FedWatch Tool
| Photo Credit:
spawns
Gold prices dipped on Monday, weighed down by a firm dollar near six-month highs and diminished prospects of a December interest rate cut by the US Federal Reserve.
FUNDAMENTALS
Spot gold was down 0.3 per cent at $4,051.48 per ounce, as of 0132 GMT.
US gold futures for December delivery edged 0.7 per cent higher to $4,049.50 per ounce.
The dollar climbed to a near six-month high on Friday, as signs of faster US job growth in September suggested that the US central bank is likely to pause cutting interest rates in December.
A stronger dollar makes greenback-priced gold more expensive for other currency holders.
Minutes from the Fed October meeting, released on Wednesday, showed policymakers cut interest rates but warned the move could risk entrenched inflation and erode public confidence in the US central bank.
A US Labour Department report, delayed by the federal government shutdown, showed on Thursday that September non-farm payrolls increased by 119,000, more than double the estimated increase of 50,000.
Meanwhile, US factory activity slipped to a four-month low in November as tariffs drove up import prices, curbing demand.
The probability of a Fed rate cut next month inched down to 69 per cent on Monday, after jumping to 74 per cent in the previous session, according to the CME FedWatch Tool.
Bets of rate cuts had surged to 74 per cent from 40 per cent on Friday following dovish comments from New York Fed President John Williams.
Gold, a non-yielding asset, tends to do well in low-interest-rate environments.
Other Fed members maintained a hawkish stance, with Dallas Federal Reserve President Lorie Logan calling for leaving the policy rate on hold “for a time” while Fed Presidents for Chicago and Cleveland both warned on Thursday that cutting rates further right now carries a wide range of risks for the economy.
Elsewhere, spot silver slipped 0.3 per cent to $49.86 per ounce, platinum rose 1.1 per cent to $1,527.25, and palladium added 0.7 per cent to $1,384.18.
Published on November 24, 2025
