Gold is trading lower again on Monday, extending Friday's sharp selloff with no fresh news driving the move.

The weakness appears to be simple follow-through from Friday's session, when spot gold fell more than 3 percent to around $4,450 an ounce after Federal Reserve Chair Kevin Warsh delivered hawkish remarks at Jackson Hole. Friday's drop erased gold's gains for the week and interrupted a strong August rally that had put bullion on track for its best monthly performance this century. Heading into the speech, gold had risen more than 13 percent for the month.

Warsh's comments reinforced the central bank's focus on bringing inflation back to target. He said the Fed needed confidence that underlying inflation is moving toward its objective clearly and at sufficient speed. Traders responded by lifting expectations for a September rate hike, which pushed Treasury yields higher and strengthened the dollar, increasing the opportunity cost of holding non-yielding gold.

With no new catalyst emerging over the weekend or into today's session, the continued softness in gold appears to reflect ongoing position adjustment rather than any fresh development. Traders seem to still be digesting Friday's repricing, with some continuing to trim length built up during August's rally while others remain on the sidelines awaiting further clarity on the rate path. That makes the next round of U.S. labor and inflation data particularly important for short-term positioning, since those releases are likely to shape how much of Friday's move is sustained.

Attention now turns to the upcoming August jobs and inflation data, which will be the key test of whether Warsh's hawkish framing is validated or whether softer readings reopen the door to a Federal Reserve hold in September. Until then, gold is likely to remain sensitive to shifts in rate expectations and dollar strength, with today's session offering little beyond continuation of Friday's move.