Gold prices slipped in Asian trading on Monday, extending last week’s decline as investors continued to scale back expectations of a Federal Reserve rate cut in December. The metal also faced pressure from a firmer U.S. dollar and growing caution in global markets, with risk sentiment weakening amid economic uncertainty.
Spot gold fell 0.6% to $4,053.84 an ounce by 00:33 ET (05:33 GMT), while December gold futures dropped 0.9% to $4,055.91 per ounce.
Gold Falls as December Rate-Cut Bets Fade
The recent pullback in gold has been driven largely by shifting expectations around the Fed’s December decision. According to CME’s FedWatch tool, markets now price only a 39.8% chance of a 25-basis-point cut at the December 10–11 meeting—down sharply from nearly 62% last week. At the same time, the probability of no change in rates has climbed to 60.2%.
The drop in confidence stems from ongoing uncertainty surrounding the U.S. economy. The recent government shutdown—the longest on record—delayed or disrupted crucial October economic reports, including inflation and jobs data. Without clarity on these indicators, the Fed faces greater difficulty assessing the economic outlook ahead of its December meeting.
Further pressure came from persistent signs of sticky U.S. inflation, while Fed Chair Jerome Powell avoided committing to any December policy shift. Higher-for-longer interest rates generally weaken the appeal of gold and other non-yielding assets.
Among other precious metals, spot platinum inched up 0.1% to $1,548.0 an ounce but remained under pressure after heavy losses in the prior session. Spot silver was flat at $50.5795 an ounce after retreating sharply from near-record levels last week.
Dollar Steady as Key U.S. Data and Fed Minutes Approach
The U.S. dollar firmed slightly on Monday, recovering a portion of last week’s pullback. The dollar index edged 0.1% higher.
Investors are now turning their attention to several key U.S. data releases this week. September’s delayed nonfarm payrolls report arrives Thursday, while November PMI data is also due. Markets are additionally awaiting the minutes from the Fed’s October meeting on Wednesday, which may offer more insight into policymakers’ thinking ahead of the December decision.
Inflation and employment remain the Fed’s top priorities—but because of the shutdown, officials warned that the October readings may not be published at all, leaving markets with even less visibility.
