Dollar pressures gold... fading hopes of interest rate cuts exacerbate the decline.

Arabian Sea Newspaper - Special

Gold prices fell on Monday, pressured by a stronger dollar near its highest level in six months and reduced prospects of an interest rate cut in December by the Federal Reserve (the U.S. central bank). By 0132 GMT, spot gold fell 0.3% to $4051.48 per ounce. Gold futures for December delivery rose 0.7% to $4049.50 per ounce. The dollar rose to its highest level in nearly six months on Friday, after indications of faster U.S. job growth in September suggested that the U.S. central bank is likely to pause interest rate cuts in December. A stronger dollar would make dollar-denominated gold more expensive for holders of other currencies. The U.S. Labor Department report, delayed by the federal government shutdown, showed on Thursday that non-farm payrolls for September rose by 119,000 jobs, more than double the estimated increase of about 50,000 jobs. Meanwhile, U.S. factory activity fell to a four-month low in November, as tariffs raised import prices, curbing demand. According to CME's FedWatch Tool, the probability of a rate cut next month fell to 69% on Monday, after jumping to 74% in the previous session. Gold, which does not yield a return, tends to rise in low interest rate environments. Among other precious metals, spot silver fell 0.3% to $49.86 per ounce. Platinum rose 1.1% to $1527.25. Palladium rose 0.7% to $1384.18 per ounce.