Gold prices held steady on Monday, primarily impacted by a strong U.S. dollar as investors reassessed expectations regarding future Federal Reserve interest rate cuts. The easing of trade tensions between the U.S. and China has also dampened demand for the precious metal.
As of 0504 GMT, spot gold remained unchanged at $4,000.65 per ounce. Meanwhile, U.S. gold futures for December delivery increased by 0.4% to $4,010 per ounce. This marks a decline of approximately 9% from the record high of $4,381.21, achieved on October 20, coinciding with the dollar reaching a near three-month peak.
“There’s a lack of upside momentum (in gold) due to some technical factors, and the dollar remains pretty resilient, which negatively impacts gold,” noted Kelvin Wong, senior market analyst at OANDA.
The Federal Reserve recently lowered interest rates by 25 basis points on October 29, marking the second cut of the year. However, Chair Jerome Powell’s hawkish comments post-announcement have raised doubts about the potential for further rate reductions in 2025. Current market expectations indicate a 71% probability of a rate cut in December, a drop from over 90% prior to Powell’s statements, according to the CME’s FedWatch Tool.
Gold typically performs well in low-interest-rate environments and during periods of economic uncertainty. Market participants are now focused on upcoming economic data, including ADP U.S. employment figures and ISM purchasing managers’ indices, which may influence the Fed’s stance.
Wong added, “Safe-haven play has diminished at this point due to the easing of U.S.-China trade tensions, indicating a possible shift towards risk-on behavior in equities.”
In related market activity, U.S. President Donald Trump stated last week that he agreed to reduce tariffs on China in exchange for concessions from Beijing regarding issues such as illicit fentanyl trade, U.S. soybean purchases, and rare earth exports.
In the broader commodities market, spot silver rose by 0.2% to $48.75 per ounce, platinum increased by 1.5% to $1,590.86, while palladium experienced a slight decline of 0.1% to $1,432.18.
This information was published on November 3, 2025.
