Gold cut early losses on Monday as investors looked forward to Donald Trump's inauguration speech for clarity on the incoming administration's policies, which could offer further clues on the Federal Reserve's interest rate path.

Gold prices were little changed on Monday as traders awaited the inauguration speech of President-elect Donald Trump later today. “The US Dollar (USD) kicks off the new week on a softer note and erodes a part of Friday’s positive move amid bets that the Federal Reserve (Fed) will cut interest rates twice this year amid signs of abating inflation

Gold firmed on Monday on a softer dollar as investors awaited Donald Trump's inauguration speech later in the day for insights into his policies that are expected to provide clarity on the inflation outlook and Federal Reserve's future rate decisions.

Gold rates dropped in the domestic futures market in the morning session on Monday, January 20, tracking weak global cues.

Gold prices were pressured by an uptick in the U.S. dollar on Friday, but remained on track for a weekly gain as uncertainties around incoming President Donald Trump's policies and renewed bets of further rate cuts lifted bullion above the key $2,