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Dollar up 0.5%, set for it best day in over a week

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Most brokerages see 25-bps rate cut in December

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US ADP employment report, non-farm payrolls due this week

(Recasts as of 0906 GMT)

By Daksh Grover

Dec 2 (Reuters) - Gold dropped 1% on Monday, ending a

four-session winning streak, weighed down by a robust U.S.

dollar, as investors eyed upcoming economic data and remarks

from Federal Reserve officials for clues on the future of U.S.

interest rates.

Spot gold was down 0.9% to $2,630.99 per ounce, as of

0906 GMT. It was down 1% earlier in the session.

U.S. gold futures fell 1.01% to $2,653.80.

The dollar index gained 0.5%, on track for its best

day in over a week, making greenback-priced bullion more

expensive for holders of other currencies.

"Some of the comments of President-elect Donald Trump

towards the BRICS countries not to move away from the U.S.

dollar are supporting the dollar and moderately weighing on the

gold prices today," said UBS analyst Giovanni Staunovo.

Trump on Saturday called on BRICS nations to pledge not to

establish or endorse an alternative currency to the U.S. dollar,

warning of 100% tariffs for non-compliance.

Bullion fell over 3% in November, its steepest monthly drop

since September 2023, amid fears that Trump's tariff plans could

prolong higher interest rates.

The ongoing slowdown in U.S. economic activity is expected

to prompt further Fed rate cuts in December, boosting investment

demand and driving gold to $2,900/oz by mid-2025, Staunovo

added.

Major brokerages maintain their expectation of a 25

basis-point Fed rate cut in December, following PCE price index

data aligning with market forecasts on Wednesday.

Key U.S. economic events this week include job openings

data, ADP employment report and non-farm payrolls. Speeches from

Fed officials, including Chair Jerome Powell, will also draw

attention.

"Gold's perceived status as a safe haven asset could

continue to support demand - given ongoing policy uncertainty

that could negatively impact the global economy, as well as

various geopolitical tensions - along with purchases by central

banks," NAB analysts said in a note.

Elsewhere, spot silver shed 1.3% to $30.22 per ounce,

platinum fell 0.4% to $941.70 and palladium

dropped 1.1% to $967.49.