On Monday, as the Federal Reserve's decision to keep interest rates remains unsettled, which led to a modest decline in gold prices. Copper prices also declined due to worries about slowing economic development.

Spot gold slumped a bit to $1,947.89 per ounce while gold futures dipped 0.3% to $1.963.90 per ounce. The two benchmarks were hovering close to the lowest level in two months.

The U.S. nonfarm payrolls report for May came in considerably stronger than anticipated, which suggested a hawkish view for the Fed as it works to lower high inflation. The yellow metal dropped on Friday as a result.

However, several Fed members also mentioned this week that the institution might leave interest rates unchanged in June as it assesses the effects of its monetary tightening policies during the previous year.

No matter what choice it makes in June, the central bank is expected to keep rates higher for longer, which is bad news for non-yielding assets like gold. On Monday, bullion prices were affected by the dollar's strength due to the possibility of rising interest rates.