Gold prices fell for the fourth consecutive session on Tuesday, under pressure from a strong USD and growingly low expectations for the possibility of the FED cutting interest rates next month.
Spot gold prices fell 0.8% to $4,011.85 an ounce at 06:46 GMT.
US December gold futures fell 1.6% to $4.010.90 an ounce.
The US dollar is a little stronger today and the number of speculative positions has also decreased in the past week. The gold market is likely to enter a sideways period of accumulation, said Marex analyst Edward Meir.
USD Index remains stable against major currencies after a strong increase in the previous session. A stronger US dollar makes gold more expensive for investors holding other currencies.
Last week, US lawmakers reached a deal to end the longest government shutdown in history. During this time, the lack of official economic data has contributed to reducing expectations that the Fed will cut interest rates again in December.
Fed Vice President Philip Jefferson said on Monday that the US central bank needs to " act cautiously" with further interest rate cuts, thereby weakening expectations for a rate cut next month.
Gold an asset that does not produce yields often moves positively in a low interest rate environment and period of economic instability.
The focus this week will be a series of US economic data, including the September non-farm payrolls report released on Thursday, to assess the health of the world's largest economy.
The probability of the Fed cutting interest rates next month fell to behind-the-scenes to behind-the-scenes to 42%, down from nearly 100% shortly after the September decision. This development reduces investment appetite for gold, ANZ said in a report.
However, structural support factors such as geopolitical instability, concerns about the sustainability of US public debt, the trend of de-dollarization and buying from central banks are expected to continue to support investment demand in the medium and long term.
For other precious metals, spot silver prices fell 1.1% to $49.63 an ounce; platinum fell 1.3% to $1,5 14.35 an ounce; and palladium lost 1.2% to $1,369.7 an ounce.
