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Gold dropped 1% on Monday, ending a four-session winning streak, weighed down by a robust U.S. dollar, as investors eyed upcoming economic data and remarks from Federal Reserve officials for clues on the future of U.S. interest rates.
Spot gold was down 0.5% to $2,640.93 per ounce, as of 1207 GMT. It was down 1% earlier in the session.
U.S. gold futures fell 0.6% to $2,663.90.
The dollar index gained 0.5%, on track for its best day in over a week, making greenback-priced bullion more expensive for holders of other currencies.
"Some of the comments of President-elect Donald Trump towards the BRICS countries not to move away from the U.S. dollar are supporting the dollar and moderately weighing on the gold prices today," said UBS analyst Giovanni Staunovo.
Trump on Saturday called on BRICS nations to pledge not to establish or endorse an alternative currency to the U.S. dollar, warning of 100% tariffs for non-compliance.
Bullion fell over 3% in November, its steepest monthly drop since September 2023, amid fears that Trump's tariff plans could prolong higher interest rates.
The ongoing slowdown in U.S. economic activity is expected to prompt further Fed rate cuts in December, boosting investment demand and driving gold to $2,900/oz by mid-2025, Staunovo added.
Major brokerages maintain their expectation of a 25 basis-point Fed rate cut in December, following PCE price index data aligning with market forecasts on Wednesday.
Key U.S. economic events this week include job openings data, ADP employment report and non-farm payrolls. Speeches from Fed officials, including Chair Jerome Powell, will also draw attention.
"Gold's perceived status as a safe haven asset could continue to support demand – given ongoing policy uncertainty that could negatively impact the global economy, as well as various geopolitical tensions – along with purchases by central banks," NAB analysts said in a note.
Elsewhere, spot silver shed 0.5% to $30.44 per ounce, platinum ticked up by 0.1% to $947.15and palladium was flat at $978.55.
(Reporting by Daksh Grover in Bengaluru, additional reporting by Swati Verma; Editing by Ed Osmond and Tasim Zahid)