Oct 7 (Reuters) – Gold prices eased on Monday as the U.S. dollar held strong and recent employment data prompted investors to scale back expectations of a big rate cut from the Federal Reserve in November.
Spot gold fell 0.2% to $2,648.21 per ounce by 1:51 p.m. ET (1751 GMT), off a record peak of $2,685.42 hit on Sept. 26.
U.S. gold futures settled 0.1% lower at $2,666.00.
“The dollar strength is the short-term headwind at this point that’s preventing new all time highs for gold,” said Peter A. Grant, vice president and senior metals strategist at Zaner Metals.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment.
The market will now scan through minutes of the Fed’s last policy meeting, and the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data this week.
With gold prices near record highs, China may hold back on further accumulation in the short-term but the broader trend to load up on the metal could continue, IG market strategist Yeap Jun Rong said.
Spot silver fell 1.2% to $31.78 and platinum lost 1.2% to $975.72, while palladium rose 1.4% to $1,026.47.
Sign up here.
Reporting by Anushree Mukherjee and Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles.