Gold retreats from all-time highs as the dollar rises

Gold prices fell after rising to all-time highs earlier on Monday, but remained above the key $2,000 level supported by growing bets that the US central bank may cut interest rates early next year.

Gold in spot transactions fell 0.4 percent to $2,062.80 an ounce by 0823 GMT. US gold futures fell 0.4 percent to $2,082.40.

Among the main reasons behind gold’s decline is the rise in the dollar index by 0.3 percent, which makes the yellow metal more expensive for holders of other currencies.

Earlier in the Asian session, gold jumped almost 2 percent to a record level of $2,111.39 amid renewed expectations of lowering interest rates after comments by Federal Reserve Chairman Jerome Powell on Friday, who said that there is no current thought about lowering interest rates.

Friday’s US non-farm payrolls data could also impact interest rate expectations.

As for other precious metals, silver fell 1.3 percent to $25.13 per ounce, palladium fell 2.6 percent to $974.12, and platinum fell 1.3 percent to $920.39.