Gold prices slipped slightly Monday, extending losses from the prior session as traders steadily pared back expectations that the Federal Reserve will cut interest rates next month.

At 07:55 ET (12:55 GMT), Spot gold fell 0.1% to $4,078.60 an ounce and gold futures for December fell 0.3% to $4,081.06/oz.

Bullion has been pressured of late, losing over 3% over the last month, pressured by a stronger dollar amid bets on delayed rate cuts and heightened economic uncertainty.

Markets are now pricing in just over a 40% chance of a 25-basis-point rate cut next month, down from over 60% earlier this month.

This was fueled chiefly by increased uncertainty over the U.S. economy, especially as the country recently emerged from its longest ever government shutdown.

Attention now turns back to the economic calendar, which has been largely devoid of fresh official U.S. data for weeks during a record-long federal government shutdown.

That temporary closure came to an end last week, paving the way for new figures on employment and inflation from the world's largest economy to be released.

One of the big publications in the days ahead will be September's U.S. jobs report, due out on Thursday, although comments from the White House have appeared to suggest that October data could, at least, be truncated.

The Fed slashed rates at its previous two gatherings, but concerns that the central bank is effectively flying blind without up-to-date economic readings have led to bets that policymakers will keep borrowing costs steady next month.

Source : Investing.com