The yellow metal remained supported by the market as it hovered around $3,390 at the start of the week, amid a modest recovery in the US dollar (USD) as the market assesses this week's inflation report.
At 9.15 am, gold was at $3,373.26, down 0.72% since it opened in early Asian trading on Monday.
A stronger US dollar and widespread risk sentiment weighed on safe-haven gold to limit its rise above the $3,400 resistance level.
Fed Governor Michelle Bowman said on Saturday that recent jobs data reflected her concerns about a labor market slowdown and reinforced her belief in the three remaining cuts in 2025.
The market is now pricing in a potential 89% chance of a September Fed rate cut and at least two more cuts by the end of the year.
In addition, the People's Bank of China (PBOC) added gold to its reserves in July, the ninth consecutive month of purchases. The news contributed to price support.
