By Anmol Choubey<\/p>\n
(Reuters) -Gold prices eased on Monday, pressured by profit-taking and an uptick in the dollar, though losses were limited as investors looked ahead to a U.S. Federal Reserve meeting, where a rate cut is expected following a series of weak labour market reports.<\/p>\n
Spot gold was down 0.2% at $3,633.86 per ounce, as of 0152 GMT. Bullion climbed about 1.6% last week, reaching a record high of $3,673.95 on Tuesday.<\/p>\n
U.S. gold futures for December delivery fell 0.4% to $3,671.30.<\/p>\n
“Gold was looking overbought on a technical basis, which prompted some profit-taking to start the new week. Some resilience from the dollar is another factor working against gold,” KCM Trade Chief Market Analyst Tim Waterer said.<\/p>\n
The U.S. dollar index edged 0.1% higher, making greenback-priced bullion more expensive for overseas buyers. [USD\/]<\/p>\n
Gold’s relative strength index (RSI) currently stands at 75, suggesting the metal is overbought. The RSI is a momentum indicator that ranges from 0 to 100, with readings above 70 typically indicating ‘overbought’ conditions, meaning the asset may be overpriced or due for a pullback.<\/p>\n
“A period of consolidation is a viable scenario for gold, while any pullbacks towards support at $3,500 would likely attract buyers whilst ever the Fed retains its dovish tilt,” Waterer said.<\/p>\n
Inflation data released last Thursday came in slightly above expectations, but market believes this will not deter the Fed from a widely anticipated quarter-percentage-point rate cut on Wednesday.<\/p>\n