Muscat: Spot gold fell 0.2 percent to $3,992.23 an ounce by 0343 GMT, while US gold futures for December delivery slipped 0.3 percent to $4,001.40. The decline comes as the dollar held firm near a three-month high, buoyed by reduced bets on further monetary easing by the Federal Reserve.

The Fed, which cut interest rates for the second time this year last week, signaled caution about additional cuts. Chairman Jerome Powell said another reduction in 2025 was “not a given.” Following his remarks, the CME FedWatch tool showed the probability of a December rate cut dropping to 65 percent from over 90 percent earlier.

Gold, which offers no yield, typically benefits from lower interest rates and economic uncertainty. However, easing trade tensions between the United States and China also dampened demand for the metal’s safe-haven appeal. Last week, US President Donald Trump agreed to scale back tariffs on China in exchange for concessions from Beijing.

Despite the latest dip, gold has surged 53 percent since the start of the year, driven by global economic jitters and policy shifts, though it remains more than eight percent below its record high set on October 20.