A stronger dollar put pressure on gold prices on Monday, and investors were waiting for further information on when the U.S. Federal Reserve might drop interest rates for the first time this year.

ESSENTIALS

As of 0100 GMT, spot gold was down 0.3% at $2,030.9 an ounce. U.S. gold futures decreased by 0.4% to $2,040.6 an ounce. Due to the 0.1% increase in the dollar index, bullion priced in US dollars became less accessible to purchasers abroad.

The Federal Reserve Governor, Christopher Waller, confirmed market wagers against U.S. interest rate reduction before June last week by stating he was in "no rush" to drop rates.

A different Fed member believes that the US central bank will lower interest rates "later this year," even in light of January's better-than-expected labor market and inflation figures.

According to minutes from the Fed's most recent meeting, most officials were worried about the dangers of lowering interest rates too quickly.

The CME Fed Watch Tool indicates that markets are presently pricing in a 68% possibility of a reduction in June. Having non-yielding bullion is more appealing when interest rates are lower.

In the meantime, investors are selling their holdings in exchange-traded funds (ETFs) backed by gold as a result of a spike in interest in bitcoin ETFs.

Spot silver dropped 0.4% to $22.86 per ounce, spot platinum declined 0.4% to $896.95 per ounce, while spot palladium slipped 0.3% to $968.23.