Gold prices slipped on Monday as the dollar strengthened to a fresh near nine-month high on growing speculation that the U.S. Federal Reserve would hike interest rates in December. Recent positive economic data and comments from central bank officials have bolstered expectations of a rate hike, with traders on Monday seeing a nearly 70 percent chance that the Fed would tighten credit in December, according to data from CME Group's FedWatch program. Improving physical demand from major Asian consumers and lingering uncertainty around the Nov. 8 U.S. election could lend support in coming weeks, analysts said. The U.S. currency strengthened against a currency basket, lifted by the rising chance of Hillary Clinton becoming U.S. President, dragging safe-haven assets like gold down. Spot gold was down 0.2 percent at $1,263.44 an ounce, while U.S. gold futures for December delivery settled down 0.3 percent at $1,263.70. Third-quarter U.S. growth figures and Fed policymakers' speeches due this week will be closely watched for clues on a possible interest rate hike.

On chart, gold held below the 200-day moving average of $1,270.56. Rangbound is expected in near term with support and resistance at $1,250 and $1,276 respectively. Third-quarter U.S. growth figures and Fed policymakers’ decision on interest rate hike in December will pose significant impact on its next move. In general, we will see a muted market ahead of Fed’s policy meeting in December.

 
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