(Bloomberg) — Gold eased as the dollar strengthened, with investors looking ahead to key US data due on Friday that may offer clues on the Federal Reserve’s interest-rate decision later this month.

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Bullion traded around $2,640 an ounce, after dropping 2.7% last week. The dollar gained as France’s far-right party said it would back a motion to topple the French government, adding further pressure on the euro and French government bonds.

A stronger greenback makes the metal more expensive for buyers in other currencies, while higher yields tend to weigh on gold as it doesn’t pay interest.

Gold’s losses last week were driven by reduced haven appetite following a US-brokered cease-fire deal between Israel and Hezbollah that came into effect mid-week. Still, fears about an escalation in Russia’s war on Ukraine continue to support demand for haven assets such as gold.

Traders await US nonfarm payrolls figures later this week, which may influence the Fed’s interest-rate decision on Dec. 18. Markets are pricing in roughly a two-thirds chance that the central bank will slash benchmark borrowing costs by a quarter point. Lower borrowing costs typically benefit gold.

Bullion prices are up almost 30% so far this year, supported by the Fed’s monetary easing cycle, central-bank purchases and heightened geopolitical and economic risks. Some analysts expect fresh records in 2025, with Goldman Sachs Group Inc. and UBS Group AG both issuing bullish outlooks last month.

Gold was steady at $2,639.32 an ounce as of 16:15 p.m. in London. The Bloomberg Dollar Spot Index rose 0.7%. Silver and platinum fell, while palladium traded in a narrow range.

–With assistance from Atul Prakash and Kanupriya Kapoor.

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