Gold prices were slightly lower on Monday as risk sentiment improved in equity markets following a pledge by Chinese officials to roll out more stimulus measures for the country's beleaguered property sector.
That said, a weaker dollar and dovish Fed bets lent some support at lower levels.
Spot gold slipped 0.1 percent to $1,978.54 per ounce, while U.S. gold futures were down 0.2 percent at $1,980.55.
At a monthly fixing today, China's central bank kept its loan prime rate near record lows, as widely expected, and also added liquidity into markets via reverse repos.
In another development, China's central bank and financial regulators pledged on Friday to ensure financing support for the beleaguered real estate sector.
The dollar held below over two-month lows on expectations that the Federal Reserve will refrain from raising interest rates over the next several months before cutting rates in mid-2024.
Fed vice chair for supervision Michael Barr said on Friday officials are likely at or near the end of their tightening campaign.
San Francisco Fed president Mary Daly said policymakers aren't certain inflation is on a path to their 2 percent target.
Boston Fed President Susan Collins said the U.S. central bank must be patient and resolute, and she wouldn't take additional firming off the table.
Trading in the U.S. may remain subdued this week due to the Thanksgiving Day holiday on Thursday.
Nonetheless, reports on durable goods orders, existing home sales and weekly jobless claims may still attract attention along with the minutes of the latest Fed meeting.
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Market Analysis
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.