Gold prices fell more than 1% on Monday, pressured by a stronger dollar and diminishing expectations of a US interest rate cut next month, as investors awaited delayed economic data this week that could provide clues about the Federal Reserve's policy direction.
At the time of writing, XAU/USD was trading at $4,030, weakening throughout the trading session due to the stronger dollar and hawkish comments from Federal Reserve officials. Therefore, currency markets have priced in less than a 50% chance of a 25 basis point (bps) interest rate cut at the December meeting.
As a result, the US Dollar Index (DXY) strengthened against a basket of six major currencies by 0.20% to 99.47. This made gold bullion more expensive for buyers. Therefore, gold could continue to trade in the $4,000-$4,050 range ahead of the release of US economic data.
Ahead of this week, the Federal Open Market Committee (FOMC) will release its meeting minutes on Wednesday. The US Bureau of Labor Statistics (BLS) will release its September Nonfarm Payrolls figures on Thursday.
Source: Newsmaker.id
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