Gold continued to fall on Monday for the sixth session in a row, reaching a bottom that is over seven months old as the dollar maintained its strength and traders digested a significant U.S. inflation report as they prepared for a flood of labor market data due this week.

Spot gold dipped 0.4% to $1,840.49 per ounce meanwhile gold futures slumped by 0.5% to $1,856.20 per ounce.

Bullion experienced its worst weekly loss since June 2021 last week, resulting in a 3.7% decrease in third-quarter prices.

While Treasury yields fell down from a 16-year high, the dollar stayed close to a 10-month high.

Data released on Friday revealed that underlying U.S. inflation decreased in August, with the core personal consumption expenditures (PCE) price index now averaging close to its 2% objective for the past three months.

According to the CME FedWatch Tool, markets predict that there will be another rate increase this year with a 45% possibility, but also that there will be some policy easing in the first half of 2024.