"Despite two consecutive weeks of scaling back speculative net length in gold, positions on COMEX remain relatively elevated at 94 percent of the record," said UBS Strategist Joni Teves.
"This could make gold vulnerable in the near-term, should the market increasingly price in a more hawkish Fed."
Speculators cut their record bullish bets on COMEX gold contracts for a second straight week, U.S. data showed on Friday.
"A massive overhang of bets on rising prices is also hanging over silver like the sword of Damocles," Commerzbank said in a note.
Spot silver, which fell about 3 percent last week, was down 0.4 percent at $19.53 an ounce.
Spot palladium rose as much as 1.2 percent to a nine-month high at $687.80 an ounce, extending gains after registering its fifth weekly gain last week, rising 5.2 percent. Sharper appetite for risk helped the more industrial precious metal catch up with its peers, which it lagged in the weeks after the Brexit vote.
It was last up 0.48 percent at $683.25 an ounce.
Spot platinum was up 0.46 pct at $1,082.