Gold prices slipped on Monday as the United States dollar strengthened following President-elect Donald Trump's 100% tariff threats against BRICS nations.
By 3:15 pm AEDT (4:15 am GMT) spot gold was trading $21.10 or 0.9% lower at US$2,627.40 per ounce.
Over the weekend, Trump warned Brazil, Russia, India, China, and South Africa (BRICS) against creating or supporting alternative currencies to the U.S. dollar, renewing fears of a global trade war and boosting the dollar at the expense of gold.
Additionally, while China’s robust November Manufacturing PMI - indicating the highest factory activity since April - provided optimism for the world's largest gold consumer, it failed to offset the broader bearish sentiment.
Meanwhile, heightened tensions in the Middle East added complexity.
Russia's airstrikes on Aleppo - the first since 2016 - followed insurgent offensives and escalating violence despite a ceasefire in neighbouring Lebanon.
Despite these risks, expectations of a Federal Reserve interest rate cut this month softened gold’s decline.
The CME FedWatch Tool showed a 67.1% probability of a 25-basis-point rate cut, potentially offering future support for the non-yielding asset.
Ahead in the week, gold traders will focus on the upcoming U.S. ISM Manufacturing PMI data set for release on Monday, and key employment reports due later in the week.