Gold is currently at $1,055.80 (-0.04%) after a sharp decline on Friday. The precious metal is weighed by expectations of an interest rate hike on December 15-16 when the Federal Reserve's Federal Open Market Committee meets next. For now bullion is on track to post a nearly 7.5% drop this month (the biggest monthly decline since June 2013). The dollar's strength also weighs on gold.

Investors are waiting for the U.S. jobs report due on Friday. Strong data would intensify expectations for higher rates in December and could push bullion further down.