Gold returned to a lower decline after being driven down by a strong U.S. dollar and 10 -year higher U.S. treasury yields.
In the Asian session, spot gold traded lower at around $ 1,840 per ounce, falling further than the one -month high reached last week at $ 1,874 per ounce.
After witnessing positive US NFP employment data readings, investors strengthened expectations for the Federal Reserve (Fed) to continue to maintain its aggressive move in tightening policy.
Ahead of the FOMC policy meeting on June 15 which is expected to raise interest rates by 50 basis points, investors will scrutinize the reading of inflation data on Friday this week first for an indication of how long the Fed will maintain its hawkish direction.
The European Central Bank's (ECB) policy meeting is also the focus of investors this week which is expected to give an indication that it is time for them to raise interest rates.
Higher interest rates affect the attractiveness of gold as it increases the opportunity cost of holding the precious metal.
