Gold holds ground near $4,000 amid softer safe-haven demand

November 03, 2025 (MLN):  Gold prices held near the flat line on Monday as a firmer U.S. dollar and reduced expectations for additional Federal Reserve rate cuts limited demand for the metal, while easing trade tensions between Washington and Beijing further dampened safe-haven appeal.

Spot gold was stable,  up 0.08% at $4,005.39 an ounce as of [9:50 am] PST, according to data reported by Mettis Global.

U.S. gold futures for December delivery edged up 0.3% to $4,008.60.

The metal has slid roughly 10% since reaching a record high of $4,381.21 on October 20, pressured by the dollar’s advance to a near three-month peak.

The Fed lowered its benchmark rate by 25 basis points earlier, its second cut this year.

However, after Chair Jerome Powell’s recent comments emphasizing a cautious stance, traders trimmed expectations for another reduction in December.

According to the CME FedWatch Tool, the probability of a December cut has fallen to 71% from more than 90% prior to Powell’s remarks.

Gold typically benefits in periods of economic uncertainty or when borrowing costs decline, as the non-yielding asset becomes more attractive relative to interest-bearing investments.

The metal has slid roughly 10% since reaching a record high of $4,381.21 on October 20, pressured by the dollar’s advance to a near three-month peak.

Market participants are now awaiting key U.S. data releases, including ADP employment figures and ISM purchasing manager indexes, for clues on whether the Fed will maintain its hawkish tone.

Last week, U.S. President Donald Trump said he had reached an understanding with Chinese President Xi Jinping to scale back tariffs in return for Beijing’s commitments on fentanyl control, agricultural imports, and rare earth exports.

Among other precious metals, spot silver rose 0.3% to $48.77 per ounce, platinum advanced 1% to $1,583.28, and palladium added 0.4% to $1,439.21.

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