Gold prices steadied on Monday after touching a one-month low in the previous session, but the metal remains under pressure from a firmer U.S. dollar and expectations the Federal Reserve is on track to tighten borrowing costs, reports Reuters.
Spot gold was little changed at $1,209.71 per ounce at 0431 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce.
"Higher U.S. interest rates and a stronger dollar are flashing red for gold investors," said Stephen Innes, APAC trading head at OANDA in Singapore.
There was little to no safe haven appeal and robust U.S. leading indicators showed the U.S. services-based economy was firing on all cylinders, suggesting the Fed will hold the course on expected rate rises, he said.
The dollar index, which measures the greenback against a basket of six major currencies, inched up 0.1 percent.
The greenback built on last week's gains and rose towards a 16-month high.
The Fed has reaffirmed its plan to raise interest rates by in December, followed by two more potential rate hikes by mid-2019 on the back of an upbeat economy and rising wage pressures.
"It seems like the bears are back in control... It's disappointing that every time gold starts to rally it runs out of steam so fast," a Hong Kong-based trader said.
The precious metal has fallen about 11 percent from its April peak after investors preferred the dollar as the U.S.-China trade war unfolded against a background of higher U.S. interest rates.
Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.
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