Gold prices fell 0.5% as the dollar strengthened, and expectations of a rate cut by the Federal Reserve were affected

According to Jinshi Data, gold prices fell by about 0.5% in the early European trading session, affected by the pressure of a stronger US dollar ahead of the Federal Reserve's monetary policy meeting next week.

The market generally expects the Federal Reserve to cut interest rates by 25 basis points in December, but the stronger PPI data in November increased the risk that the Fed will pause rate cuts in early 2025.

Still, gold is on track for a weekly gain as heightened geopolitical tensions in Eastern Europe and the Middle East stoke safe-haven demand. ING analysts said the main question for the gold market is how quickly the Federal Reserve will ease its policy after Donald Trump wins the U.S. presidential election.