Gold prices experienced a decline on Monday, impacted by a robust dollar at six-month highs and reduced expectations for a rate cut in December by the US Federal Reserve.
As of 0132 GMT, spot gold decreased by 0.3 percent, trading at $4,051.48 per ounce. Conversely, US gold futures for December delivery climbed 0.7 percent, reaching $4,049.50 per ounce. The strengthening dollar, which reached a near six-month high on Friday, was driven by indications of stronger job growth in the US for September, suggesting that the Fed may postpone interest rate reductions in December.
A stronger dollar generally makes gold, priced in US currency, more expensive for holders of other currencies. The minutes from the Federal Reserve’s October meeting, released this Wednesday, indicated that while interest rates were cut, policymakers expressed concerns that this action could entrench inflation and undermine public confidence in the central bank.
Additionally, a delayed US Labor Department report, due to a federal government shutdown, revealed that non-farm payrolls rose by 119,000 in September, surpassing the predicted increase of 50,000. Meanwhile, US factory activity decreased to a four-month low in November, hindered by tariffs that inflated import prices and dampened demand.
According to the CME FedWatch Tool, the probability of a Fed rate cut next month slightly decreased to 69 percent on Monday, following a rise to 74 percent in the previous session. This surge was influenced by dovish remarks from New York Fed President John Williams.
Gold typically performs well in low-interest-rate environments, as it does not yield interest. Other Federal Reserve officials maintained a hawkish outlook, with Dallas Fed President Lorie Logan advocating for holding the policy rate steady “for a time,” and both the Chicago and Cleveland Fed Presidents cautioning that further rate cuts carry significant economic risks.
In related markets, spot silver fell 0.3 percent to $49.86 per ounce, while platinum rose by 1.1 percent to $1,527.25, and palladium increased by 0.7 percent to $1,384.18.
Published on November 24, 2025.
