And he settled down gold At $2,646.64 per ounce by 0319 GMT. Prices hit a record high of $2,685.42 last month.
US gold futures fell 0.1 percent to $2,663.10.
Yip Jun Rong, a market analyst at IG, told Reuters: “Gold prices were surprisingly strong, as they refused to surrender to the strength of the US dollar and the rise in Treasury bond yields.”
He added that the US elections may increase demand for gold as a hedge in the face of uncertainty, while the expected interest rate cuts from the Federal Reserve may push prices to a record high level, targeting $2,800 by the end of the year.
The dollar rose to its highest level in more than two months in the previous session, making gold more expensive for holders of other currencies.
According to the CME Group’s Fed Watch tool, markets expect 87 percent of interest rates to be cut by 25 basis points in November.
Low interest rates increase the attractiveness of holding the yellow metal, which does not generate returns.
Investors are awaiting data on US retail sales, industrial output, and weekly unemployment claims, which will be released later in the week.
Representatives of three central banks said at the annual conference of the London Bullion Market Association that central banks remain keen to buy gold to diversify their reserves for financial or strategic reasons.
As for other precious metals, silver settled in spot transactions at $31.14 per ounce. Platinum fell 0.3 percent to $989.95, and palladium fell by about one percent to $1,020.50.
