U.S. gold futures for December rose 0.4% to $4,010 an ounce.
Gold held steady on Monday, held in check by a strong dollar, as investors reversed bets on further Federal Reserve rate cuts in the near term, while easing trade tensions between the US and China also limited demand for the precious metal.
Spot gold was flat at $4,000.65 an ounce as of 0504 GMT. U.S. gold futures for December rose 0.4 percent to $4,010 an ounce.
Prices are down about 9 percent from a record high of $4,381.21 on Oct. 20, while the dollar climbed to a nearly three-month high.
“There is a lack of upside momentum (in gold) due to some technical factors and the dollar remains quite resilient, so that has a negative impact on gold,” said OANDA senior market analyst Kelvin Wong.
The Fed cut rates by 25 basis points for the second time this year on October 29, but Chairman Jerome Powell’s hawkish comments afterwards raised doubts about further rate easing in 2025.
Traders now see a 71 percent chance of a rate cut in December, compared to more than 90 percent before Powell’s comments, according to CME’s FedWatch Tool.
Non-profitable gold thrives in a low interest rate environment and during economic uncertainties.
Investors have their eyes on other news, including ADP US employment numbers and ISM PMIs this week, for economic indicators that could change the Fed’s hawkish stance.
“Safe haven play has reduced at the moment due to the de-escalation of US-China trade tensions. It could also be a rotation to a much riskier play in equities,” Wong said.
U.S. President Donald Trump said last week he agreed to cut tariffs on China in exchange for concessions from Beijing on the illegal fentanyl trade, U.S. soy purchases and rare earth exports.
Elsewhere, spot silver rose 0.2 percent to $48.75 an ounce, platinum rose 1.5 percent to $1,590.86 and palladium lost 0.1 percent to $1,432.18.
Published on November 3, 2025
#Gold #remains #steady #stronger #dollar #investors #scale #interest #rate #cuts