Gold retreated on Monday as the dollar rose versus the euro, but the metal held around a nine-week high as pressure on stock markets continued to support investors' flight to safety.
Asian shares sank to their lowest in more than four years on Monday after the People's Bank of China guided the yuan's midpoint rate sharply stronger. Global stock indexes and oil prices also dropped, continuing a brutal start to 2016.
"Some investors were anticipating that gold futures were slightly overbought after the run-up last week," said Phillip Streible, senior commodities broker for RJO Futures in Chicago.
"Traders booked profits on that run-up to $1,100, possibly to free up margins to support other positions that have recently been beat up but still have long-term prospects."