On Monday, gold prices dropped from one-month highs as speculators achieved some gains post hitting gains for two consecutive weeks, while copper prices dropped in response to disappointing economic growth statistics from key importer China.

Spot gold slumped by 0.2% to $1,951.51 meanwhile gold futures slipped 0.5% to $1,955.45 per ounce. Both soared over 1.6% during the previous week.

The dollar dropped to 15-month lows over the past two weeks, amid a spate of disappointing U.S. inflation readings, while metal prices experienced significant gains. The lackluster statistics also increased wagers that the Federal Reserve would soon cease its year-long cycle of rate increases.

Gains in gold were however somewhat constrained by indications of a resiliency in the American economy, which in turn weighed on the desire for safe havens like the yellow metal. Following last week's peak of $1,960 per ounce, prices have basically plateaued.

At its meeting in late July, the Federal Reserve is widely anticipated to raise interest rates. But considering the weak inflation numbers from last week, markets are now expecting a protracted pause in the Fed's rate hiking cycle.