Gold fell for the fourth straight session on Tuesday, impacted by a strong dollar and lower expectations for a U.S. interest rate cut next month. Spot gold saw a slight decrease of 0.1%, trading at $4,038.43 per ounce, as of 0104. Gold futures in the U.S. for December delivery fell by 0.9%, closing at $4,037.50 per ounce. The dollar held steady against other currencies after a notable rise in the previous session. An appreciating dollar raises the price of gold for those holding different currencies.

Last week, legislators finalized a deal to end the longest government shutdown in U.S. history, a time marked by the absence of official economic data, which led to reduced expectations for another rate cut from the Federal Reserve in December. Market participants currently see a 43% chance of a quarter-point cut in the Federal Reserve’s interest rate at the next meeting, down from the 50% probability noted last week. On Monday, Fed Vice Chair Philip Jefferson emphasized that the U.S. central bank should “proceed slowly” with further rate cuts, leading to a more cautious outlook for a potential reduction next month. Gold, lacking yield generation, often shows strong performance in settings marked by low interest rates and times of economic uncertainty.

This week’s focus will be on U.S. data releases, especially the September nonfarm payrolls report on Thursday, which could offer insights into the strength of the world’s largest economy. SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, announced a reduction in its holdings by 0.25%, resulting in a total of 1,041.43 metric tons on Monday, down from 1,044.00 tons on Friday.

Goldman Sachs noted on Monday that central banks likely purchased significant amounts of gold in November, maintaining a multi-year trend focused on diversifying reserves to reduce geopolitical and financial risks. Elsewhere, spot silver fell by 0.3% to $50.05 per ounce, platinum held steady at $1,534.70, while palladium dropped by 0.6% to $1,385.23.