Gold Extends Losing Streak as Dollar Strengthens and Rate-Cut Hopes Fade

Gold fell for a fourth straight session on Tuesday, pressured by a stronger U.S. dollar and declining expectations of an interest rate cut next month.

Spot gold slipped 0.9% to $4,010 per ounce as of 0444 GMT, while U.S. December gold futures dropped 1.6% to $4,009.20.

“The dollar was a bit stronger today and some speculative positions were reduced over the past week. The gold market is likely to consolidate for now,” said Edward Meir, analyst at Marex.

The U.S. dollar index (DXY) held firm after Monday’s sharp rise, making gold more expensive for buyers using other currencies.

Rate-cut expectations have eased since lawmakers ended the longest U.S. government shutdown and fresh comments from Fed officials signaled caution. Fed Vice Chair Philip Jefferson said the central bank must “proceed slowly” with further cuts, dampening hopes for a December move.

Non-yielding gold typically benefits from lower interest rates and economic uncertainty, but traders are now awaiting key U.S. data releases, including Thursday’s nonfarm payrolls, for further clues on the economic outlook.

According to ANZ, odds of a December rate cut dropped to 42% overnight, down from nearly 100% shortly after the September decision, weighing on gold sentiment. Even so, the bank noted that geopolitical risks, U.S. debt concerns, de-dollarisation, and central bank buying remain supportive for gold in the medium to long term.

In other precious metals, silver fell 1.2% to $49.58, platinum slipped 1% to $1,517.73, and palladium dropped 1.5% to $1,372.05.