Gold finishes in red as US dollar rises, trading weakens

Gold bars 

Gold prices finished in the red today, Dec. 23, given the stronger US dollar amid weak trading on the back of the end-of-year holidays.

February gold futures plunged by 0.6%, or $15.7, to close at $2,628.20, after ending last week's trading with 1.1% in losses.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, added 0.4% to 108.07 points at 10:48 pm Makkah time, which dampened the attractiveness of the yellow metal to holders of other currencies.

The US dollar's gains came in tandem with expectations suggesting that Federal Reserve officials would slow the pace of monetary policy next year. Further, the US government's avoidance of a partial shutdown late last week supported the greenback’s performance.

Investors are now pricing in a 91% chance of a Fed rate cut at its January meeting, up from about 51% a month ago, according to the CME FedWatch Tool.