Gold prices edged lower in Asian trading on Monday as growing expectations of a December rate cut by the Federal Reserve encouraged investors to move back into risk assets, dampening safe-haven demand.
Spot gold fell 0.3% to $4,052.53 per ounce, while December futures dropped 0.7% to $4,086.10 per ounce. Renewed optimism in equities and risk markets weighed on bullion, while reports that the U.S. is brokering peace talks between Russia and Ukraine further reduced geopolitical risk sentiment.
Still, concerns over global fiscal strains and diplomatic tensions between China and Japan kept gold comfortably above the $4,000 mark. Analysts noted that while risk appetite has improved, expectations of lower borrowing costs and persistent inflation pressures continue to limit the metal’s downside.
After comments from Federal Reserve Governor John Williams, who warned of labor-market risks and easing inflationary pressures, traders are now pricing in a 67.3% chance of a 25-basis-point rate cut at the December 9–10 FOMC meeting, up sharply from 39.8% last week.
Among other precious metals, platinum rose 1.4%, while silver edged slightly lower.
Investors will now turn to a series of delayed U.S. economic reports—including GDP, PCE inflation, retail sales, and jobless claims—which could shape the Fed’s final policy decision of the year.