More Fed policymakers are scheduled to speak this week and are expected to back the case for a rate hike within months. Fed Chair Janet Yellen will be at a panel event hosted by Harvard University on Friday.
"We had more hawkish noises yesterday, with a trio of Fed speakers lining up to say that June or July are live meetings for considering a rate increase," Societe Generale analyst Robin Bhar said.
ABN Amro views gold's price set-back as temporary.
"We expect U.S. real yields (taking into account inflation expectations) to peak and to move lower," said ABN Amro analyst Georgette Boele, in a report. "This will make gold as, an asset, attractive."
Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose 0.38 percent to 872.52 tonnes on Monday.
— CNBC's Gina Francolla contributed to this report.