NEW YORK: Prices eased on Monday as the US dollar held strong and recent employment data prompted investors to scale back expectations of a big rate cut from the Federal Reserve in November.

Spot gold fell 0.3% to $2,645.00 per ounce by 09:55 a.m. ET (1355 GMT), off a record peak of $2,685.42 hit on Sept. 26. US gold futures eased 0.1% to $2,664.70. The US dollar hovered at its highest level in seven weeks, making greenback-priced bullion more expensive for other currency holders. “The dollar strength is the short-term headwind at this point that’s preventing new all time highs for gold,” said Peter A.

Grant, vice president and senior metals strategist at Zaner Metals. “I still see short term potential to $2,700 and the longer-term objective at $3,000 remains valid due to safe haven demand from geopolitical tensions and political uncertainty as we get closer to the US election.”

Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment. Traders now see an 86% probability that the Fed will cut rates by only a quarter of a percentage point next month after a US employment report last week reinforced the belief the economy is unlikely to need the Fed to deliver large interest rate cuts for the rest of this year.