Gold prices fell slightly in Asian trade on Monday, and were nursing a tumble from record highs as strong U.S. payrolls data fueled bets on a smaller interest rate cut by the Federal Reserve. 

The yellow metal fell from record highs as the dollar and U.S. Treasury yields shot up on the strong payrolls data, which saw traders largely scale back bets the Fed will cut interest rates by 50 basis points again.

Focus this week is on a slew of signals from the Fed and the U.S. economy, both of which are likely to factor into interest rates. 

Spot gold fell 0.2% to $2,647.64 an ounce, while gold futures expiring in December fell slightly to $2,667.10 an ounce by 00:16 ET (04:16 GMT). 

Gold hit by bets on smaller rate cut 

Bullion prices had surged to record highs in September after the Fed cut rates by 50 bps and announced the start of an easing cycle.

Stronger-than-expected nonfarm payrolls data on Friday, however, spurred bets that the Fed will cut rates only by 25 bps in its November meeting. CME Fedwatch showed traders pricing in an over 90% chance of such a scenario. 

Traders were also seen positioning for a higher terminal rate for the Fed, which presents a less attractive environment for metal prices. The dollar surged after Friday’s data.

Focus this week is on addresses by a string of Fed officials, as well as the minutes of the Fed’s September meeting, for more cues on rates.