Gold extended its decline below $2,700 in early trading at the start of the week as the US dollar strengthened ahead of Donald Trump's inauguration, which put pressure on the bulls.
At 9.20am, gold prices were at $2,690.94, down 0.43% since opening early Monday in Asian trading.
Analysts predict gold prices will face uncertainty ahead of President Donald Trump's inauguration as market participants watch closely for potential trade policy developments.
Any aggressive statements by Trump on tariffs in support of the US manufacturing sector could support the USD and weigh on other commodity prices.
However, better-than-expected US inflation data last week continued to support gold, which could spark speculation that the Fed is set to implement a more safe-haven interest rate cut.
In addition, ongoing geopolitical tensions in the Middle East and the Russia-Ukraine conflict remain key drivers of gold's safe-haven appeal.
According to The Guardian, the Russian army took control of two settlements in the eastern region of Ukraine last Saturday which provided a series of commodity gains.
