Gold prices fall on Tuesday

Gold fell for a fourth straight session on Tuesday, pressured by a stronger dollar and lower expectations of a US interest rate cut next month. Spot gold dropped 0.8 per cent to $4,011.85 per ounce, while December US futures fell 1.6 per cent to $4,010.90.

The dollar remained firm after a recent surge, making gold costlier for holders of other currencies. Expectations for a December Fed rate cut have eased following the end of the US government shutdown and comments from Fed Vice Chair Philip Jefferson urging a cautious approach.

Investors will watch upcoming US data, including September’s nonfarm payrolls, for clues on the economy. Despite near-term weakness, analysts note that geopolitical tensions, debt concerns, de-dollarisation, and central bank buying could support gold demand over the medium and long term.

Other precious metals also declined, with silver down 1.1 per cent at $49.63, platinum slipping 1.3 per cent to $1,514.35, and palladium falling 1.2 per cent to $1,369.78.

Attribution: Reuters