"We had surprisingly hawkish minutes last week which put the June rate rise back on the cards. That certainly has made life tough for gold, because the dollar's rallied, 2-year Treasury yields have rallied, even 10-year yields have rallied somewhat."
Price-sensitive gold buyers in Asia were active overnight, but were unable to consistently lift prices.
Elsewhere data from the International Monetary Fund showed regular official sector gold buyers China, Russia and Kazakhstan raised their bullion reserves again last month, while Venezuela sold off more of its holdings earlier this year.
Among other precious metals, silver futures were up 0.5 percent at $16.33 an ounce, after dipping to a five-week low of $16.14 earlier in the session.
Palladium futures were down 1.07 percent at $532.20 an ounce, off a 12-week low of $520.60 reached earlier in the day. Platinum futures were at $994.50 per ounce.