Gold prices fell on Monday, pressured by a surge in the US dollar to levels nearing its highest point in six months, along with declining expectations of an interest rate cut in December by the US Federal Reserve.
Gold fell 0.5% in spot trading to $4,041.41 an ounce.
Gold futures for December delivery fell 0.9% to $4,041.30 an ounce.
The dollar posted strong gains last Friday, as data showed faster growth in non-farm payrolls during September, reinforcing expectations that the US Federal Reserve may temporarily halt its interest rate-cutting policy during December.
The rise of the dollar contributes to making gold priced in US dollars more expensive for holders of other currencies.
The U.S. Labor Department report—delayed by the federal government shutdown—showed that nonfarm payrolls rose by about 119,000 jobs in September, more than double the expected 50,000.
In contrast, US factory activity in November fell to its lowest level in four months, as higher import prices due to tariffs weakened demand.
According to the CME FedWatch tool, the probability of an interest rate cut next month fell to 69% on Monday, after having risen to 74% in the previous session.
Gold—which does not generate returns—is usually a beneficiary in low interest rate environments.
In other precious metals, silver fell 0.3% to $49.86 an ounce in spot trading, while platinum rose 1.1% to $1,527.25 and palladium climbed 0.7% to $1,384.18 an ounce.
