Gold Drops as Strong Dollar Sours Four-Session Rally; Fed in Focus
Gold prices slipped on Monday, snapping a four-day winning streak, as the U.S. dollar staged a sharp rally and investors braced for pivotal economic data and Federal Reserve insights on the path of interest rates.
Spot gold was down 0.6% at $2,636.54 per ounce as of 01:41 p.m. ET (1841 GMT), having fallen as much as 1% earlier in the day. U.S. gold futures settled 0.8% lower at $2,658.50.
A firmer dollar driven partly by U.S. President-elect Donald Trump's comments that BRICS nations should refrain from trying to replace the dollar is pressuring gold prices, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Trump urged the nine-nation bloc not to back or create alternatives to the dollar, threatening 100% tariffs for defiance.
This stoked fears that U.S. interest rates will remain high for a longer period. Such concerns had already triggered a 3% drop in non-yielding gold during November, the sharpest monthly decline since September 2023.
Grant noted that gold has pared losses, with bullion being supported by persistent geopolitical uncertainty. He said the downside is limited and expects a choppy, consolidative gold market into year-end.
Source : Reuters
