The yellow metal extended its price decline into a second week, defending its position around $4,000 amid the US Fed's monetary policy assessment following the interest rate cut.
At 9.15 am, gold prices were at $3,988, down 0.32% since it opened early Monday in Asian trading.
The US dollar recorded a stronger rise and this limited gold's gains, as the market reduced expectations of an interest rate cut by the end of this year.
During the Fed Jerome Powell's press conference, he downplayed expectations of an interest rate cut at the December meeting while emphasizing that any policy decision still depends on current economic data.
However, market sentiment remained in favor of gold prices after President Donald Trump and Xi Jinping met and recorded positive trade talks.
The talks offered some temporary relief after the escalation of tensions in recent weeks.
For now, the outlook for gold flows appears to be relatively neutral and the upside potential remains broad in the future. It is driven by long-term decisions such as central bank demand and prolonged global uncertainty.
