Gold slipped on Monday, trading in a tight range as concerns about sustained higher U.S. interest rates spiked ahead of crucial economic indicators.

Spot gold slumped by 0.2% to $2,032.32 per ounce, while gold futures dropped 0.4% to $2,041.85 per ounce.

The price of the yellow metal didn't experience significant advancements in recent weeks, given a series of warnings from Fed officials indicating that the bank was not eager to trim interest rates.

Indications of persistent U.S. inflation and strength in the job market reinforced this notion, leading traders to gradually diminish the likelihood of rate cuts in May and June.

However, a certain level of safe haven demand for gold played a role in mitigating losses in the yellow metal. Indications of a potential economic downturn in Japan and the UK, along with ongoing geopolitical disruptions in the Middle East, contributed to the demand for safe haven assets.

Attention has shifted directly to the upcoming U.S. PCE price index data, which serves as the Federal Reserve's preferred inflation gauge. The reading, scheduled for later this week, is anticipated to provide additional insights into U.S. inflation following a sequence of persistent readings in December and January.