Gold dropped on Monday, after a volatile week which saw prices whipsaw as the dollar surged in the wake of Donald Trump's election win a day before the Federal Reserve cut interest rates.

Bullion traded near $2,665 an ounce after falling almost 2% last week. The precious metal received support from US central bank easing, but was buffeted as investors weighed the likely impact of the tax cuts, trade tariffs and looser regulations that Trump is pledging.

While gold may benefit from demand as a hedge against inflationary pressures resulting from those policies, Wall Street economists now see fewer Fed cuts than they did before the election, which is a negative for the metal. Hedge fund managers have cut bullish bets on gold to a 12-week low, the latest Commodity Futures Trading Commission data show.

Bullion has risen around 30% this year as Fed moved to ease monetary policy and heightened geopolitical and economic risks drove haven demand. It's also seen support from central bank purchases. 

Spot gold declined 1% to $2,666 an ounce in London. The Bloomberg Dollar Spot Index was was up 0.5%. Silver and palladium were little changed, while platinum advanced.

Source : Bloomberg