Gold cut its early losses on Monday. Investors are eagerly awaiting Donald Trump's inauguration speech for clarity on the policies of the incoming administration, which could offer new clues about the Federal Reserve's interest rate trajectory

Spot gold was down 0.1% at $2,697.60 per ounce at 0300 GMT, after falling 0.5% earlier in the day. US gold futures fell by 0.3% to $2,740.10. According to Tim Waterer, chief market analyst at KCM Trade, “gold came under selling pressure today, but the precious metal's status as a traditional safe haven should limit the immediate decline.” Gold is used as an inflation hedge, but rising interest rates are reducing its appeal. It also serves as a safe haven.

Silver fell 0.6% to $30.16 per ounce, palladium held steady at $947.99 and platinum lost 0.2% to $940.84.