Gold Prices Drop Amid Rising Dollar

Gold prices took a hit on Monday, impacted by a surge in the dollar as investors pared down expectations of a rate cut by the U.S. Federal Reserve.

Spot gold declined by 0.8 percent, reaching 3968.76 dollars per ounce by 0016 GMT. Likewise, U.S. gold futures for December delivery fell by 0.5 percent, settling at 3978.30 dollars per ounce.

The dollar index remained steady, close to its highest peak in three months, achieved last week, rendering dollar-priced gold more expensive for holders of other currencies.

The U.S. Federal Reserve reduced interest rates by a quarter percentage point on Wednesday, marking the second cut this year, bringing the benchmark overnight rate to a target range between 3.75 and 4.00 percent.

In the realm of other precious metals, silver dropped by 0.5 percent in spot transactions to 48.41 dollars per ounce. Meanwhile, platinum decreased by 0.1 percent to 1566.40 dollars, and palladium fell by 0.6 percent to 1424.88 dollars.