Spot gold was down 0.06 percent at $1,335.88 an ounce, after dipping to $1,329.58, the lowest since July 27.
U.S. gold for December delivery was nearly flat at $1,356.90 an ounce. Gold futures settled at $1341.30 on Monday.
"Gold is under pressure this morning. It's still a reaction after Friday's strong U.S. jobs report," ABN AMRO commodity strategist Georgette Boele said.
"It's on the defensive because the market is expecting more of a rate hike after Friday."
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
U.S. stocks, European shares and the dollar gained after the U.S. job data.
There was a mix of short covering and bargain hunting in Asian trading hours on Monday before sellers wrestled back control, MKS PAMP Group trader Sam Laughlin said in a note.