Gold had its biggest monthly drop in two and a half years as the dollar is at a multi-month high due to the possibility of a U.S. interest rate hike.

Reuters reported that spot gold went down 0.1 percent to $1,056.01 an ounce on November 30, up a notch from Friday's $1,052.46, which is the lowest level it has been since 2010. Meanwhile bullion's value went down 7.5 percent in November, the steepest monthly slide since June 2013. The decline in gold is because investors are expecting a United States federal interest rate hike. 

Meanwhile, the dollar has strengthened against euro as the European Central Bank is expected to announce new stimulus this week. According to Bloomberg, gold normally trades inversely to the U.S. dollar. With higher US borrowing prices, gold becomes less attractive because it doesn't bring profit like bonds and equities.

"We find ourselves at multi-year lows with no real sign of recovery," London's Marex Spectron precious metals head David Govett. "There is some physical demand around here, but nothing like the amount needed to stage a comeback in gold prices."

Besides gold, silver is expected to report its worst month for the past year as it went down almost 10 percent, according to a report by the Business Standard. Palladium lost 20 percent this month, while platinum lost 16 percent, the biggest these platinum group metals has listed in four years. 

For trading forecasts, bullion traders will be looking closely at the US non-farm payrolls report on Friday. This data will help policy maker decide on whether they would increase fed interest rates on their meeting on December 15 to 16.

Data from fed-fund futures show that the odds for a rate hike is 74 percent. Fed Head Janet Yellen will give a statement before Congress this week and it will be dissected for clues on the possible interest rate increase.