Institutions: Expectations of a Fed rate cut offset some of the dollar's gains, keeping gold prices stable.

Gold prices remained stable on Monday as rising expectations of a Federal Reserve rate cut next month helped offset pressure from a stronger dollar. Ole Hansen, head of commodity strategy at Saxo Bank, said, "Gold prices held steady after investors assessed the prospect of another Fed rate cut following New York Fed President Williams's suggestion that there might be room for a rate cut given the weakening job market. However, other officials were more cautious." Williams said on Friday that U.S. interest rates could fall without jeopardizing the Fed's inflation target, while also helping to prevent a decline in the job market. According to CME FedWatch, after Williams' dovish comments, bets on a rate cut next month surged from 40% to 72%. (Golden Ten)