Gold prices ease as dollar firms ahead of Fed rate decision

Gold prices eased on Monday, pressured by profit-taking and an uptick in the dollar, though losses were limited as investors looked ahead to a US Federal Reserve meeting, where a rate cut is expected following a series of weak labour market reports.

Spot gold was down 0.2% at $3,633.86 per ounce, as of 0152 GMT.

Bullion climbed about 1.6% last week, reaching a record high of $3,673.95 on Tuesday.

US gold futures for December delivery fell 0.4% to $3,671.30.

“Gold was looking overbought on a technical basis, which prompted some profit-taking to start the new week.

Some resilience from the dollar is another factor working against gold,“ KCM Trade Chief Market Analyst Tim Waterer said.

The U.S. dollar index edged 0.1% higher, making greenback-priced bullion more expensive for overseas buyers.

Gold’s relative strength index (RSI) currently stands at 75, suggesting the metal is overbought.

The RSI is a momentum indicator that ranges from 0 to 100, with readings above 70 typically indicating ‘overbought’ conditions, meaning the asset may be overpriced or due for a pullback.

“A period of consolidation is a viable scenario for gold, while any pullbacks towards support at $3,500 would likely attract buyers whilst ever the Fed retains its dovish tilt,” Waterer said.

Inflation data released last Thursday came in slightly above expectations, but market believes this will not deter the Fed from a widely anticipated quarter-percentage-point rate cut on Wednesday.

The Fed’s policy meeting this week comes amid challenges, including a legal dispute over its leadership and efforts to confirm US President Donald Trump’s nominee to the Board of Governors.

“While we see the risks to our $4,000/toz mid-2026 forecast as skewed to the upside, rising speculative length raises the risk of tactical pullbacks, as positioning tends to mean-revert,” Goldman Sachs said in a note on Friday.

Speculators reduced their net long positions in gold by 2,445 contracts to 166,417 in the week ended September 9.

Elsewhere, spot silver was steady at $42.14 per ounce, platinum rose 0.5% to $1,397.76 and palladium was down 0.9% at $1,187.06.