Gold dips as dollar firms, investors weigh US rate outlook

Gold prices dropped for a third consecutive session on Monday, as the dollar firmed near six-month highs, while investors awaited more clarity on the US interest rate trajectory. Spot gold was down 0.4% at $4,045.58 per ounce, as of 0536 GMT. US gold futures for December delivery fell 0.9% to $4,042.50 per ounce. “The dollar index is up near six-month highs, it’s above 100 and if it continues to trade above 100, then there will be further pressure on gold prices,” said Jigar Trivedi, senior research analyst at brokerage Reliance Securities. The dollar held near the six-month highs hit on Friday, making greenback-priced gold more expensive for holders of other currencies. The probability of a Fed rate cut next month inched down to 69% on Monday, after jumping to 74% in the previous session, according to the CME FedWatch Tool.