Gold steadies after sell-off as markets await US data

Gold held steady on Monday as investors awaited US economic data this week for clues on the Federal Reserve's interest rate trajectory after prices fell more than 2 per cent in the last session on reduced rate cut expectations, reports Reuters.

Spot gold was steady at $4,077.57 per ounce as of 1219 GMT. US gold futures for December delivery fell 0.3 per cent to $4,080.10 per ounce.

Carlo Alberto De Casa, external analyst at Swissquote, said spot prices are stable as investor buying of gold as a hedge against market uncertainty after prices fell last week has offset some of the pressure from a firm US dollar and reduced Fed rate cut expectations.

The dollar index extended gains for a second session, making dollar-priced bullion expensive for holders of other currencies.

Markets will zero in on a string of US data this week for signs of economic strength, with the delayed September nonfarm payrolls report due on Thursday.

Meanwhile, odds of a US rate cut in December have slipped below 50 per cent after policymakers struck a cautious tone, weighing on gold.

Traders now see a 45 per cent chance of a 25-basis-point rate cut in December, down from more than 62 per cent last week, the CME FedWatch tool showed.

Safe-haven gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset.