Global equities are under pressure this morning, but the sell-off has yet to spill over into safe-haven assets. Gold remains stuck in a tight range, restrained by a stronger dollar and uncertainty over the Federal Reserve’s next move.
The metal is entering its sixth day of sideways trading, struggling to regain momentum after falling about 10% from the record high of $4,381.29 reached in October.
Spot gold was trading at $3,990 an ounce by 10:00 GMT, still unable to hold above the $4,000 mark as the dollar extended gains.
The greenback climbed to a three-month high against major currencies on Monday, supported by fading bets on another Fed rate cut this year.
Fed Chair Jerome Powell’s hawkish tone last week has weighed on sentiment. He said that further easing was “not a foregone conclusion,” prompting traders to scale back expectations for a December rate move.
That uncertainty deepened after several Fed officials offered mixed messages on Monday. Some warned about inflation risks, while others pointed to slowing labour-market momentum, leaving markets guessing about the central bank’s next step.
Even so, analysts say gold’s downside remains limited. While signs of progress in US-China trade talks have eased tensions, concerns over advanced chip export restrictions have kept relations fragile, maintaining a floor under the metal.