While markets expected additional hints on the U.S. economy this week, gold prices barely changed in early trade on Monday. In contrast, copper prices increased in response to data indicating modest growth in the Chinese manufacturing sector.

Spot dipped 0.1% to $1,917.24 per ounce, meanwhile gold futures slid 0.2% to $1,925.15 per ounce.

The dollar strengthened and major asset classes rallied as a decline in the Federal Reserve's favorite inflation indicator, the personal consumption expenditures price index, weighed on the yellow metal.

However, core PCE inflation remained high, and the Fed is anticipated to continue raising interest rates in the foreseeable future as a result of this trend. The markets priced in a roughly 87% possibility that the Fed will raise rates later in July as a result of the high core reading and some indications of economic resiliency in the United States.

Any prospective gains in gold are anticipated to be constrained by increasing interest rates as well as growing risk tolerance.