Gold held near a two-month low amid persistent strength in the dollar, with traders winding back expectations for a Federal Reserve rate cut next month after comments from Jerome Powell underscored resilience in the US economy.

Bullion was steady after five days of declines and is set for a weekly loss of more than 4%, the biggest since June 2021. Traders pared back expectations for an interest-rate cut in December and policy-sensitive US yields jumped after Powell said that the central bank will be in no rush to cut interest rates given the "remarkably good" performance of the economy.

Lower borrowing costs and declining yields tend to benefit gold, as it doesn't pay interest.

Gold Is Set for Biggest Weekly Loss Since 2021

Strengthening dollar weakened precious metal's appealThe precious metal has dropped about 8% from a record high on Oct 31, with losses accelerating after Donald Trump's White House victory last week.

A gauge of the dollar has risen to a two-year high on expectations that under a Trump presidency economic growth and corporate profits will power higher. A stronger greenback makes commodities priced in the currency more expensive for most buyers.

Still, gold is up more than 20% this year, with gains supported by the Fed's monetary easing cycle, central bank purchases and heightened geopolitical and economic risks that have driven haven demand.

Spot gold was little changed at $2,566.50 an ounce as of 7:33 am in Singapore. The Bloomberg Dollar Spot Index was steady after hitting the highest level since 2022 on Thursday. Silver and platinum edged lower, while palladium was flat.

Bloomberg