Dollar up 0.5, set for it best day in over a week
Most brokerages see 25bps rate cut in December
US ADP employment report, nonfarm payrolls due this week

Dec 2 Reuters Gold dropped 1 on Monday, ending a foursession winning streak, weighed down by a robust U.S. dollar, as investors eyed upcoming economic data and remarks from Federal Reserve officials for clues on the future of U.S. interest rates.

Spot gold was down 0.9 to 2,630.99 per ounce, as of 0906 GMT. It was down 1 earlier in the session.

U.S. gold futures fell 1.01 to 2,653.80.

The dollar index gained 0.5, on track for its best day in over a week, making greenbackpriced bullion more expensive for holders of other currencies.

Some of the comments of Presidentelect Donald Trump towards the BRICS countries not to move away from the U.S. dollar are supporting the dollar and moderately weighing on the gold prices today, said UBS analyst Giovanni Staunovo.

Trump on Saturday called on BRICS nations to pledge not to establish or endorse an alternative currency to the U.S. dollar, warning of 100 tariffs for noncompliance.

Bullion fell over 3 in November, its steepest monthly drop since September 2023, amid fears that Trump39;s tariff plans could prolong higher interest rates.

The ongoing slowdown in U.S. economic activity is expected to prompt further Fed rate cuts in December, boosting investment demand and driving gold to 2,900oz by mid2025, Staunovo added.

Major brokerages maintain their expectation of a…