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Gold dropped 1 percent on Monday, ending a four-session winning streak, weighed down by a robust US dollar, as investors eyed upcoming economic data and remarks from Federal Reserve officials for clues on the future of US interest rates.
Spot gold was down 0,7 percent to US$2 635,65 per ounce, as of 1059 GMT. It was down 1 percent earlier in the session.
US gold futures fell 0,8 percent to US$2 658,60.
The dollar index gained 0,5 percent, on track for its best day in over a week, making greenback-priced bullion more expensive for holders of other currencies.
“Some of the comments of President-elect Donald Trump towards the BRICS countries not to move away from the US dollar are supporting the dollar and moderately weighing on the gold prices today,” said UBS analyst Giovanni Staunovo.
Trump on Saturday called on BRICS nations to pledge not to establish or endorse an alternative currency to the US dollar, warning of 100 percent tariffs for non-compliance.
Bullion fell over 3 percent in November, its steepest monthly drop since September 2023, amid fears that Trump’s tariff plans could prolong higher interest rates.
The ongoing slowdown in US economic activity is expected to prompt further Fed rate cuts in December, boosting investment demand and driving gold to US2 900/oz by mid-2025, Staunovo added.
Major brokerages maintain their expectation of a 25 basis-point Fed rate cut in December, following PCE price index data aligning with market forecasts on Wednesday. — Reuters
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