Washington: Gold prices remained steady on Monday after recent declines, as a stronger US dollar and fading hopes for an early interest rate cut by the Federal Reserve limited investor demand for the precious metal.
Spot gold was trading around 3,998 dollars per ounce, while US gold futures were at about $ 4,009 . The yellow metal had reached a record high of $ 4,381 in mid-October but has since dropped by nearly 10 percent as market sentiment shifted.
The dollar’s strength has been a major factor behind gold’s recent weakness. A stronger greenback makes gold more expensive for buyers using other currencies, reducing demand in global markets. At the same time, investors have scaled back expectations of a rate cut by the Federal Reserve in December. The chances of a cut have fallen to about 70 percent, compared to over 90 percent just a few weeks ago.
Easing trade tensions between the United States and China have also reduced the need for safe-haven assets like gold. Analysts say the pullback is a natural correction following a strong rally earlier this year when investors rushed to buy gold amid global economic uncertainty.
Other precious metals also showed mixed movement. Silver gained 0.3 percent to 48.77 dollars an ounce, while platinum and palladium saw slight increases.
In India, local gold prices followed the global trend. On the Multi Commodity Exchange, ten grams of 24-carat gold traded near 1.21 lakh rupees as the dollar remained firm and investor sentiment cooled. The weakening rupee against the dollar also kept local prices elevated, limiting any major relief for Indian consumers.
Experts believe the next major trigger for gold prices will be upcoming statements from the US Federal Reserve. If policymakers indicate that interest rates will stay high for longer, gold may continue to face pressure. On the other hand, signs of a softer stance could help prices rebound.
For now, analysts suggest that gold is likely to remain range-bound, with support levels near 3,950 dollars and resistance around 4,075 dollars per ounce.
Investors are keeping a close watch on global economic data and geopolitical developments that could influence safe-haven demand in the weeks ahead.