Investing.com– 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. 

fell 0.2% to $2,647.64 an ounce, while 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 data on Friday, however, spurred bets that the Fed will cut rates only by 25 bps in its November meeting. 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 surged after Friday’s data.

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

inflation data due later in the week is also likely to factor into the outlook for rates.

Other precious metals tracked declines in gold. fell 0.5% to $997.05 an ounce, while fell 0.1% to $32.360 an ounce. 

Copper steadies with China stimulus in focus 

Among industrial metals, copper prices steadied on Monday after logging wild swings over the past week, although they still remained relatively upbeat on the prospect of more stimulus in top importer China.

Benchmark on the London Metal Exchange steadied at $9,972.0 a ton, while one-month rose 0.2% to $4.5728 a pound. 

Copper was initially buoyed by China announcing more stimulus measures in late-September. But trading volumes in the red metal dwindled over the past week, on account of the week-long Chinese Golden Week holiday.

Chinese markets are set to reopen on Tuesday, while the government is also set to hold a briefing on more stimulus measures.

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