Gold prices fell on Monday, expanding the previous session's drops as more robust than anticipated Markets revised their projections for early interest rate decreases in response to U.S. labor figures.

Spot gold slumped by 0.5% to $2,035.69 per ounce, meanwhile gold futures dipped 0.4% to $2,042.25 per ounce. Both dropped 0.9% during the starting week of the year.

The gold had a poor kick off to 2024, following the greenback’s rapid rise as speculators reduced their wagers that Fed would cut interest rates as early as March.

The notion that the job market is resilient was reinforced by better-than projected nonfarm payroll figures released on Friday, which offers Fed additional leeway to maintain higher interest rates for an extended period of time.

There was also a significant amount of profit-taking in gold following a somewhat robust rally through December. By the end of 2023, the yellow metal had gained more than 10%.

Eyes are now on the upcoming December’s CPI figures scheduled to release this week on Thursday.