While the strengthening dollar weighed on prices, gold fell slightly on Monday, after reaching a two-week high the previous day. However, following statements by the President of the American Federal Reserve, Jérôme Powell, reinforced expectations of lower interest rates

The spot price of gold fell 0.1% to $3,367.51 per ounce at 11:27 GMT, after reaching the highest level since August 11 on Friday. American gold futures for delivery in December fell 0.2% to $3,412.30.

The dollar index appreciated by 0.2%, making gold more expensive for holders of other currencies. [USD/]

On Friday, Jerome Powell raised the possibility of a rate cut at the next Fed meeting, stressing that the risks to the job market were increasing, even if inflation remained a concern, but adding that no decision had been made.

Gold tends to appreciate in a low interest rate environment, which reduces the opportunity cost of owning an unprofitable asset.

In addition, spot silver lost 0.3% to $38.72 per ounce, platinum fell 1.1% to $1,346.21, and palladium lost 1% to $1,115.07 per ounce.