Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.
Fed Chair Janet Yellen said on Friday the case for higher rates was strengthening, while Vice Chair Stanley Fischer later suggested an increase could come as soon as September.
On Wednesday, Boston Fed President Eric Rosengren said the Fed should consider that quicker interest rate rises over time could stave off risks to the economy, while Chicago Fed President Charles Evans said he is increasingly convinced that U.S. economic growth has slowed permanently.
Technical selling, earlier strength in the U.S. dollar and rate hike speculation have been behind gold's weakness, Commerzbank analyst Carsten Fritsch said, adding that it was nearing the psychologically key $1,300 level.
"Nerves have become a bit fraught ahead of the September FOMC meeting, given the latest comments from Janet Yellen," Saxo Bank's head of commodities research Ole Hansen said. "The rising dollar and U.S. real rates have also been creating headwinds.
Silver was up 0.48 percent at $18.65 an ounce. Platinum was down 0.42 percent at $1,047.60, after touching an eight-week low of $1,043.20. Palladium was down 1.03 percent at $670.50, after tapping a six-week low at $665.97.