Gold prices declined for a second session on Monday, hurt by a firmer dollar and increased risk appetite, as markets expect the Federal Reserve to adopt a cautious approach under U.S. President-elect Donald Trump's administration.

Spot gold fell 0.8% to $2,662.59 per ounce as of 1112 GMT. U.S. gold futures fell 0.9% to $2,669.40.

"Gold prices have declined primarily due to a stronger U.S. dollar, rising Treasury yields, and increased risk appetite in financial markets — a trend that has gained momentum since Donald Trump's victory in last week's presidential election," said Ricardo Evangelista, senior analyst at ActivTrades.

The dollar index rose 0.3% after having posted a weekly gain last week, making gold less appealing for other currency holders, while the S&P 500 on Friday closed with its biggest weekly percentage gain in a year.

Gold, meanwhile, logged its worst week in over five months as Trump's victory raised the prospect of higher tariffs, which could keep interest rates elevated.

"Trump being the president-elect has directly led to some paring in rate-cut expectations into 2025, with a potential 'Red Wave' translating to little resistance to his tax cuts and spending plans, coupled with his stance for more tariffs," said IG market strategist Yeap Jun Rong.

"Overall, that may complicate the Fed's fight against inflation and we may expect the Fed to be more cautious in its easing process ahead, suggesting upside pressures on yields and a stronger U.S. dollar, which could cap gold prices."

Traders now see a 65% chance of a 25 basis-point Fed rate cut in December, versus around 83% chance before Trump's victory, according to the CME Fedwatch tool.

Several Fed officials, including Chair Jerome Powell, are scheduled to speak this week. U.S. consumer and producer price index data, weekly jobless claims and retail sales figures are also due this week.

Spot silver added 0.1% to $31.32 per ounce, platinum rose 0.9% to $977.65, and palladium shed 0.1% to $987.59.

(Reporting by Rahul Paswan in Bengaluru, editing by Ed Osmond and Vijay Kishore)