Gold edges down on higher dollar

Gold fell for a second session on Monday, hurt by a firmer dollar and increased risk appetite as markets expect the Federal Reserve to adopt a cautious approach to monetary policy easing under US President-elect Donald Trump's administration, reports Reuters.

Spot gold was down 0.8 per cent at $2,661.92 per ounce as of 1245 GMT, after dropping around 1 per cent earlier in the session. U.S. gold futures fell 0.9 per cent to $2,668.80.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

"Gold prices have declined primarily due to a stronger U.S. dollar, rising Treasury yields, and increased risk appetite in financial markets - a trend that has gained momentum since Donald Trump's victory in last week's presidential election," said Ricardo Evangelista, senior analyst at ActivTrades. The dollar index rose 0.3 per cent after posting a weekly gain last week, making gold less appealing for other currency holders. The S&P 500 on Friday closed with its biggest weekly percentage gain in a year.

Spot silver fell 0.1 per cent to $31.25 per ounce, platinum rose 0.6 per cent to $974.55, and palladium shed 0.2 per cent to $986.96.