"If the dollar continues to strengthen, gold will soften. It won't necessarily be a smooth trajectory, but I don't see any reason why it should pick up," Citi analyst David Wilson said.
"Markets are still targeting that December rate hike. If you look at the relationship with the dollar this year, that's really the driver."
Gold tends to benefit from ultra-low U.S. rates, which cut the opportunity cost of holding non-yielding bullion, while weighing on the dollar. Its 9 percent drop this year has come largely on the back of rate hike speculation.
Silver was up 1 percent at $14.22 an ounce, while palladium was 0.2 percent higher at $538 an ounce. Platinum was up 0.2 percent at $842 an ounce, off an earlier low of $831.80 an ounce.
The platinum market deficit will shrink this year, before moving into a small surplus in 2016 as supply from mining and recycling rises and investment falls, the World Platinum Investment Council said in a report.