Gold prices fell in Asian trade on Monday amid increasing bets that the Federal Reserve will keep interest rates higher for longer, although some safe-haven demand and near-term dollar weakness kept the yellow metal above key levels.

Bullion prices were hit with a heavy dose of profit-taking in January as traders unwound bets that the Fed will begin cutting interest rates by as soon as March 2024. This unwinding came to a head late last week when the yellow metal fell close to breaking below the $2,000 an ounce level.

But gold found strong support at that level, aided chiefly by increased safe-haven demand in the face of a worsening conflict in the Middle East. Some near-term profit-taking in the dollar, which fell from an over one-month low on Monday, also aided bullion prices.

But gold remained under pressure from the prospect of higher-for-longer U.S. rates.