Gold prices hovered around five-month lows on Monday as investors braced for the central bank's meeting in Jackson Hole later this week.
However, the yellow metal has rebounded slightly from its daily lows of $1,885 touched at the start of the Asian session to around $1,893 an ounce, at the time of writing.
Investors are now looking for additional clues about the direction of the Federal Reserve (Fed)'s next monetary policy at its upcoming meeting in September.
As a result, the market will focus mainly on Fed Chairman Jerome Powell's speech at the Jackson Hole symposium on Friday.
Meanwhile, China's central bank (PBOC) unexpectedly kept its five-year lending key rate (LPR) at 4.20%, and cut the one-year LPR by 10 basis points to 4.45%.
Following the PBOC's less dovish action, financial markets moved mixed in the Asian session.
In addition, the economic data in the main focus this week is the publication of manufacturing and services PMI data for the European Zone, the UK and the United States on Wednesday.
