With December gold options expiring Monday, the market will likely remain in check. But it is still important to watch the U.S. dollar for cues.
December gold futures traded to a low of $1,225.70 in the Sunday overnight session, the metal's lowest level since July 8. Already in a bear market, gold is being led lower by a stronger dollar and by a decrease in global risk premium due to a deal the Iran nuclear deal.
(Read more: Bargain hunters get ready to buy gold)
The expiration of the December contract is traditionally the biggest of the year. After a quiet day on Friday in which gold remained in a $10 range below resistance at $1,251 and above $1,240, the stronger dollar sparked selling ahead of expiration.