Gold prices rose on Monday after a small decline the previous week, although the recovery was hampered by expectations of gradual interest rate cuts in the United States. An ounce rose 0.4% to $2,571.11, following a two-month decline the previous week. On Friday, gold saw its biggest weekly drop in nearly three years. At $2,575.70, U.S. gold futures rose 0.2%.
A strong U.S. economy and inflation data continue to shift the debate among Federal Reserve policymakers about the pace and size of rate cuts, as investors further reduced expectations for a rate cut in December last week.
U.S. retail sales rose slightly more than expected in October, indicating the economy got off to a solid start in the fourth quarter. Gold premiums in India rose to a near four-month high last week as demand recovered as prices fell.
