Gold is losing its luster in the face of the strength of the dollar, which reduces bets on a US interest rate cut

Gold fell for the fourth consecutive session today, affected by the strength of the dollar and the decline in the possibility of a cut in US interest rates next month.

The price of gold in spot transactions fell 0.1 percent to $4,039.19 per ounce at 01:31 GMT.

US gold futures for December delivery fell 0.9 percent to $4,038.60 an ounce.

“The dollar was a little stronger today, and some speculative contracts also decreased over the past week. The gold market will witness stability for the time being,” said Edward Mayer, an analyst at Marex.

The dollar index stabilized against major currencies after a sharp rise in the previous session. The rise in the dollar increases the cost of gold for holders of other currencies.

Last week, lawmakers reached an agreement to end what has become the longest US government shutdown ever, as the absence of official economic data during it contributed to weakening expectations that the Federal Reserve (the US central bank) would cut interest rates again in December.

Federal Reserve Vice Chairman Philip Jefferson said on Monday that the central bank should “proceed slowly” with further interest rate cuts, reducing expectations of a cut next month.

Non-yielding gold tends to perform well in a low interest rate environment and in times of economic uncertainty.

The focus this week will be on US data releases, including the September non-farm payrolls report that will be released on Thursday, for indications of the health of the world’s largest economy.

As for other precious metals, the price of silver in spot transactions fell 0.4 percent to $50 per ounce, platinum rose 0.3 percent to $1,538.74, and palladium fell 0.5 percent to $1,386.01.