Gold prices edged lower on Monday, as the U.S. dollar moved up against major currencies, with traders betting on hopes the Federal Reserve will tighten its monetary policy over the coming months.
Last week, the Fed raised the interest rate by 25 basis points and signaled another hike in December this year and three more increases in 2019, if the economy continues to register strong growth.
Trade fears have eased following the U.S. and Canada reaching an agreement on a framework North American Free Trade Agreement deal, just before the deadline of midnight of September 30.
The new deal, called the United States-Mexico-Canada Agreement, would permit more U.S. access to Canada's dairy market and restricts its car exports to Washington.
"It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home," said US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland in a joint statement.
Gold futures for December ended down $4.50, or 0.4%, at $1,191.70 an ounce.
On Friday, gold futures for December ended up $8.80, or 0.70%, at $1,196.20 an ounce, bouncing back strongly after falling to a six-week low a session earlier.
Silver futures for December ended at $14.507 an ounce, down $0.205 for the session.
Copper futures for December settled at $2.7875 per pound, down $0.0175 from previous close.
The dollar index rose to 95.00 and is still holding firm at 94.91, up 0.11 points, or 0.12% from previous close.
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