2023.12.0418:30:00UTC+00Gold Retreats After Hitting Record High, Settles Sharply Lower

Gold prices tumbled on Monday after registering a record high in the Asian session, as the dollar climbed higher despite easing concerns about the outlook for interest rates.

Gold prices rallied to an all-time high of $2,151.20 earlier, buoyed by hopes the Federal Reserve will cut rates sooner than expected.

Fed Chair Jerome Powell's remarks last week that inflation is moving in the right direction, helped as well.

However, the bullion retreated subsequently as the dollar gained in strength, rallying to 103.85, rising about 0.55% from the previous close.

Gold futures for February ended down $47.50 at $2,042.20 an ounce, falling nearly $100 from a record high recorded barely a few hours earlier.

Silver futures for March ended lower by $0.950 at $24.907 an ounce, while Copper futures for March settled at $3.8355 per pound, down $0.0960 from the previous close.

"Perhaps the combination of pending orders above the previous high and an illiquid moment in the markets contributed to the extremely volatile move, with the yellow metal now trading back around the previous record highs," said Craig Ernam, Senior Market Analyst at OANDA, UK & EMEA.

Traders are now looking ahead to the release of the Labor Department's closely watched monthly jobs report on Friday.

Economists currently expect employment to increase by 180,000 jobs in November after rising by 150,000 jobs in October, while the unemployment rate is expected to hold at 3.9%.

Reports on service sector activity, private sector jobs, weekly jobless claims and consumer sentiment may also attract attention in the coming days.