Gold settled lower on Monday ahead of this week's Federal Reserve meeting, with a retreat in the dollar and a softer tone to stock markets after downbeat German economic data helping the metal.
The precious metal fell 0.5 percent last week as global equities posted their biggest weekly percentage gain since July 2013, while the U.S. dollar also strengthened.
U.S. gold futures for December delivery settled down $2.50 an ounce at $1,229.30.
Spot gold was last flat at $1,225 an ounce.
Gold's outlook this week will depend largely on a Fed policy meeting, when the U.S. central bank is widely expected to end its bond-buying stimulus program, known as quantitative easing, analysts said.