Gold fell for a fourth straight session on Tuesday, weighed down by a firm dollar and diminished prospects of a US interest rate cut next month.

Spot gold was down 0.1 percent at US$4,039.19 per ounce, as of 0131 GMT. U.S. gold futures for December delivery fell 0.9 percent to US$4,038.60 per ounce.

"The dollar was a bit stronger today and also some of the speculative length has been reduced this past week. The gold market is going to consolidate for now," said Marex analyst Edward Meir.

The dollar held steady against its rivals after a sharp rise in the previous session. A stronger dollar makes gold more expensive for other currency holders.

Last week, lawmakers reached an agreement to end what had become the longest-ever U.S. government shutdown, during which an absence of official economic data helped dampen expectations for another rate cut from the Federal Reserve in December.

Fed Vice Chair Philip Jefferson said on Monday the U.S. central bank needed to "proceed slowly" with further rate cuts, denting expectations for a decrease next month.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainties.

Focus this week will be on U.S. data releases, including the September nonfarm payrolls report on Thursday, for clues on the health of the world's largest economy.

"Expectations the Fed will cut again next month dropped to 42 percent overnight from a high of almost 100 percent soon after the September decision. This has weighed on investor appetite for gold," ANZ said in a note.

"Nonetheless, structural tailwinds, such as geopolitical uncertainty, concerns about U.S. debt sustainability, de-dollarisation trends and central bank buying, are expected to support investment demand in the medium- and long-term."

Elsewhere, spot silver eased 0.4 percent to US$50 per ounce, platinum rose 0.3 percent to US$1,538.74, and palladium fell 0.5 percent to US$1,386.01.

REUTERS

Gold extends fall on firm dollar, easing Fed rate-cut bets