Mumbai: Gold prices eased on Thursday as the United States dollar strengthened and traders reduced their expectations of a possible interest rate cut by the United States Federal Reserve in December.

Spot gold was trading lower at about 4063 dollars per ounce, while United States gold futures also recorded a small decline. The rise in the dollar to its highest level in more than two weeks made the metal more expensive for buyers using other currencies, reducing overall demand.

Market confidence in a December rate cut weakened after the minutes of the Federal Reserve’s October meeting showed that policymakers were cautious about easing further. According to market estimates, the chance of a December rate cut has now fallen to nearly one third, compared to almost half just a few days earlier.

Investors are also waiting for the delayed United States jobs data for September, which is expected to give a clearer picture of the economic situation and guide the Federal Reserve’s next decisions.

In India, domestic gold futures on the Multi Commodity Exchange were slightly lower as the stronger dollar and reduced hopes of near term policy easing by the Federal Reserve influenced local prices. Traders said that although gold has fallen in recent days, it remains supported by strong buying from central banks and continued demand from investors looking for safe assets.

Analysts say the movement of the dollar, upcoming economic data and any fresh signals from the Federal Reserve will determine the direction of gold prices in the days ahead.