Gold lost its recovery momentum after being seen struggling to break above $2,300 at the opening of the week.
Investors will keep an eye on indicators for the Federal Reserve (Fed) this week such as the reading of the US Michigan Consumer Sentiment index on Friday.
Meanwhile, the US Dollar Index (DXY) moved higher again against a currency-weighted group used by its trading partners, rebounding from near one-month lows.
For now, the price of gold is now at $2,305.49, which is up by 0.21% since it opened at the beginning of trading in the Asian session on Monday.
Last Friday, the Non-Farm Payrolls (NFP) employment data showed some signs that the US economy is slowing. An increase of 175,000 was recorded in April compared to an increase of 315,000 for March. The loss exceeded market expectations of 243,000.
In addition, the unemployment rate increased to 3.9% and the average hourly earnings also decreased by 3.9% in April.
The PMI data of the ISM survey service fell into the contraction area when it touched the level of 49.4 from 51.4 last March which is still below the market consensus of 52.0.
After the important data was announced, the probability of an interest rate cut by the Fed was predicted to increase with traders expecting as much as 38 basis points by the end of the year.
It helped the precious metal surge to $2,320 on weak US economic data and erased early gains following hawkish remarks from the Fed.
Fed Governor Michelle Bowman said in her statement that she is ready to raise interest rates if it helps in stopping the rise in inflation.
Meanwhile, Chicago Fed President Austan Goolsbee noted that the latest US jobs report was strong and emphasized that current monetary policy is limited.
These comments from several Fed officials show signs of a reduction in the metal's attractiveness to further add to the gains.
