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 Gold prices retreated on Monday as U.S. Treasury yields firmed, while investors' attention turned to economic data for clues on the Federal Reserve's interest rate trajectory in 2025 after the central bank flagged a slower pace of rate cuts this year.

Spot gold fell 0.2% to $2,633.03 per ounce by 0932 GMT. U.S. gold futures eased 0.4% to $2,645.20.

"Gold is trading with a slightly weak momentum as yields are trading higher and traders look ahead to a series of U.S. economic data releases this week to assess Fed's stance on rate cuts," said Jigar Trivedi, senior analyst at Reliance Securities. [US/]

The U.S. jobs report on Friday will help shape expectations of the Fed's rate path this year after the U.S. central bank rattled markets last month by reducing its projected cuts in the face of stubborn inflation.

Market watchers are also looking to job openings data on Tuesday, ADP employment numbers and the minutes from the Fed's most recent policy meeting on Wednesday for further insights.

Goldman Sachs pushed back its gold price forecast of $3,000 per troy ounce to the second quarter of 2026 from December 2025, citing fewer Fed rate cuts.

"Opposing forces - lower speculative demand and structurally higher central bank buying - have effectively offset each other, keeping gold prices range-bound over the past few months," Goldman said, adding that ETF demand has also grown less than expected. [GOL/ETF]

U.S. President-elect Donald Trump returns to office on Jan. 20 and his proposed tariffs and protectionist policies are expected to further fuel inflation.

Bullion is considered a hedge against inflation and uncertainty but high rates reduce the non-yielding asset's appeal.

"We also expect de-escalation in the geopolitical war in the Middle East, hence the safe haven buying may not emerge," Reliance Securities' Trivedi added.

Spot silver gained 0.4% to $29.73 per ounce, platinum rose 0.7% to $945.15, and palladium eased 0.1% to $921.50