Gold prices declined on Monday pressured by a firm US dollar, as investors look ahead to several major central bank meetings and U.S. inflation data this week for further clarity on the interest rate path, reports Reuters.
Spot gold was down 0.5 per cent at $1,993.49 per ounce, as of 0934 GMT. US gold futures eased 0.3 per cent to $2,009.20.
The dollar rose 0.1 per cent against its rivals, making gold more expensive for other currency holders.
"Bullion could easily be restored back above the $2,000 level, especially if this week's US CPI print comes in below market expectations, and if the Fed fails to push back on market expectations for U.S. rate cuts," said Exinity Chief Market Analyst Han Tan.
US non-farm payrolls increased by 199,000 last month, above economists' expectations of 180,000. The report reined in hopes that the Federal Reserve could cut interest rates as soon as March.
In the limelight now, is the November U.S. consumer price report due on Tuesday, which could offer more rate cut clues ahead of the Fed's statement and Chair Jerome Powell's comments on Wednesday.
The Fed is widely expected to leave rates unchanged at 5.25 per cent-5.50 per cent this week. The European Central Bank, Bank of England, Norges Bank, and the Swiss National Bank will also conduct policy meetings on Thursday.
Meanwhile, COMEX gold speculators lowered their net long position by 11,895 contracts to 132,515 in the week ended Dec. 5.
Spot silver lost 0.1 per cent to $22.94 per ounce, while platinum rose 0.5 per cent to $918.95. Palladium fell 0.6 per cent to $941.36 per ounce.
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