Spot gold dropped 0.5% to $2,733.01 per ounce and U.S. gold futures tumbled 0.3% to $2,745.5
Gold prices dropped on Monday as the U.S. dollar held firm, while investors awaited U.S. economic data for fresh insights on the Fed’s monetary policy path.
Spot gold dropped 0.5% to $2,733.01 per ounce, as of 0232 GMT.
U.S. gold futures tumbled 0.3% to $2,745.5.
The dollar index added 0.2%, on track for its best month since April 2022. A stronger dollar makes gold less appealing for other currency holders.
The U.S. dollar has continued its good run of form in the aftermath of the Japanese election, which has dented gold’s appeal, according to Tim Waterer, chief market analyst at KCM Trade.
But, gold still looks in good shape to potentially make a push towards $2,800 and beyond but it will first have to navigate key macro data this week, which could have interest rate implications for the Fed, he added.
Data lined up for the week includes the U.S. employment report, job openings, and core PCE data, which are vital for assessing the labour market’s health and inflation trends.
Traders now see a nearly 95% probability of a quarter bp cut by the Federal Reserve in November, as per CME’s FedWatch Tool. Lower rates raise the appeal of non-yielding bullion.
Gold reached a record high of $2,758.37 on Wednesday, driven by safe-haven demand amid geopolitical uncertainties.
Israeli Prime Minister Benjamin Netanyahu claimed airstrikes “hit hard” Iran’s defenses, while Iranian Supreme Leader Ali Khamenei said the damage should not be exaggerated.
Elsewhere, as the U.S. gears up for Election Day on November 5, uncertainty prevails, with recent polls showing a tight contest between Donald Trump and Kamala Harris.
Spot silver was 0.9% lower to $33.39 per ounce and platinum dropped 0.1 to $1,022.20.