Gold prices dropped to their lowest level in over a week on Monday as the U.S. dollar strengthened. Investors are now turning their attention to a series of economic data releases expected this week for indications on the scale of rate cuts the Federal Reserve might implement at its September meeting.

As of 9:37 a.m. ET (1337 GMT), spot gold was down approximately 0.1%, trading at $2,501.20 per ounce, after hitting its lowest point since August 23 earlier in the session.

“One of the main drivers of the gold price over the past two months has been the dollar’s near 5% weakness against a basket of major currencies, which largely explains the 8.5% appreciation in the ounce. However, we note that the DXY is attempting to reverse its direction to the upside as it reaches the lower end of its trading range in early 2023. Together, these signals point to a likely near-term break of resistance with a renewal of historical highs, which could be followed by a medium- or even long-term reversal in the dynamics of the gold price,” said Alex Kuptsikevich, the FxPro senior market analyst.

What’s weighing on gold prices?

Upcoming U.S. economic data releases this week include the ISM surveys, JOLTS job openings, ADP employment, and the non-farm payrolls report.

The market widely anticipates that the Federal Reserve will cut rates at its September 17-18 meeting, marking the first rate reduction in this policy cycle.

According to the CME FedWatch tool, investors currently see a 69% probability of a 25-basis-point cut and a 31% probability of a 50-basis-point cut in September. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.

The dollar hovered near a two-week high reached earlier in the session, making gold more expensive for holders of other currencies.

Spot silver dropped 1.2% to $28.51 per ounce, hitting its lowest level in over two weeks.

Platinum edged up 0.2% to $927.55, while palladium gained 0.8% to $973.25.