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

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Bullion traded around $2,633 an ounce in late Asia hours on Monday, after declining almost 3% last week. The dollar gained against the euro as political tensions flared in France, while the yen retreated as US Treasury yields rose.

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 safe-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 safe assets such as gold.

Markets are preparing for US nonfarm payrolls figures later this week, which may influence the Fed’s interest-rate decision on Dec. 18. Markets are pricing in about a 70% chance that the US central bank will slash benchmark borrowing costs by a quarter point. Lower borrowing costs typically benefit gold.

Prices are up about 30% so far this year, supported by the US 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 down 0.4% at $2,633.06 an ounce as of 3:44 p.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.4%. Silver, platinum and palladium all fell.

–With assistance from Atul Prakash and Kanupriya Kapoor.

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