Gold prices fell on Monday after a four-session surge, pushed by a stronger US dollar and profit-taking, as investors awaited critical US economic data for clues on the Federal Reserve's monetary policy outlook.

Spot gold lost 0.7% to $2,636.38 per ounce at 0204 GMT. U.S. gold futures fell 0.8% to $2,658.80.

"The yellow metal has been facing some profit-taking lately as market participants unwind some of the geopolitical risk premium, combined with the strength of the US dollar," said IG market strategist Yeap Jun Rong.

The dollar index (.DXY), opens new tab, rose 0.5%, making bullion more expensive for holders of foreign currencies.

Major US data due this week include job vacancies, the ADP employment report, and payrolls. A few Fed officials are scheduled to appear this week, including Fed Chair Jerome Powell on Wednesday.

According to the CME Group's FedWatch Tool (opens in new tab), markets presently anticipate a 65.4% possibility of a 25-basis-point rate drop in December.

"If the Fed sets the groundwork more clearly for a potential rate hold until 2025, we may see gold prices rise much more," Rong added. Higher interest rates reduce the appeal of non-yielding bullion.

Gold prices fell more than 3% in November, marking the worst monthly performance since September 2023, as the threat of increased tariffs under the new Donald Trump administration to keep interest rates higher for longer loomed.

Trump insisted on Saturday that the BRICS countries agree not to create or sponsor a new currency to replace the US dollar, or face 100% tariffs.

Among other metals, spot silver declined 0.7% to $30.39 per ounce, while platinum slipped 0.2% to $944.20 and palladium fell 0.3% to $975.44.