Nov 24 (Reuters) - Gold prices dipped on Monday, weighed
down by a firm dollar near six-month highs and diminished
prospects of a December interest rate cut by the U.S. Federal
Reserve.
FUNDAMENTALS
* Spot gold was down 0.3% at $4,051.48 per ounce, as
of 0132 GMT.
* U.S. gold futures for December delivery edged 0.7%
higher to $4,049.50 per ounce.
* The dollar climbed to a near six-month high on
Friday, as signs of faster U.S. job growth in September
suggested that the U.S. central bank is likely to pause cutting
interest rates in December.
* A stronger dollar makes greenback-priced gold more
expensive for other currency holders.
* Minutes from the Fed October meeting, released on
Wednesday, showed policymakers cut interest rates but warned the
move could risk entrenched inflation and erode public confidence
in the U.S. central bank.
* A U.S. Labor Department report, delayed by the federal
government shutdown, showed on Thursday that September nonfarm
payrolls increased by 119,000, more than double the estimated
increase of 50,000.
* Meanwhile, U.S. factory activity slipped to a four-month
low in November as tariffs drove up import prices, curbing
demand.
* 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.
* Bets of rate cuts had surged to 74% from 40% on Friday
following dovish comments from New York Fed President John
Williams.
* Gold, a non-yielding asset, tends to do well in
low-interest-rate environments.
* Other Fed members maintained a hawkish stance, with Dallas
Federal Reserve President Lorie Logan calling for leaving the
policy rate on hold "for a time" while Fed Presidents for
Chicago and Cleveland both warned on Thursday that cutting rates
further right now carries a wide range of risks for the economy.
* Elsewhere, spot silver slipped 0.3% to $49.86 per
ounce, platinum rose 1.1% to $1,527.25, and palladium
added 0.7% to $1,384.18.
DATA/EVENTS (GMT)
0900 Germany Ifo Business Climate, Curr Conditions,
Expectations New November
(Reporting by Ishaan Arora in Bengaluru; Editing by Sherry
Jacob-Phillips)
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