Gold prices dipped on Monday as the U.S. dollar soared to an over two-year high after a robust jobs report last week cemented expectations the Federal Reserve will proceed with caution with cutting interest rates this year.
Spot gold fell 1% to $2,661.76 per ounce as of 03:57 p.m. ET (2057 GMT). Prices hit their highest in a month on Friday. U.S. gold futures settled 1.3% lower at $2,678.60.
The dollar index (.DXY), rose to its highest since November 2022 after the U.S. jobs report underscored the strength of the economy and muddied the Fed outlook.
A higher dollar makes bullion more expensive for overseas buyers.
Trump will be sworn in as president of the U.S. next week. His proposed tariffs and protectionist trade policies are expected to be inflationary and could spark trade wars, adding to gold's allure as a safe-haven asset.
Trump will be sworn in as president of the U.S. next week. His proposed tariffs and protectionist trade policies are expected to be inflationary and could spark trade wars, adding to gold's allure as a safe-haven asset.
Currently, markets expect a 25-basis-point cut this year, compared with expectations of 40 basis points last week.
Higher interest rates make the non-yielding bullion less attractive.
Spot silver lost 2.6% to $29.62 per ounce, platinum dropped 1.4% to $950.90 and palladium shed 0.5% to $943.50.
Source : Reuters
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