Gold wavered on Monday as pressure from speculation over a potential increase in U.S. interest rates this month offset the metal's safe-haven appeal amid widespread weakness across other assets.
Spot gold was almost flat at $1,328.77 an ounce, with U.S. gold futures settled down $8.90 at $1,325.60 and was last down 0.19 percent to $1,332.
Amid market concerns that the Fed was about to resume its rate-hiking cycle, Fed Governor Lael Brainard offered cautionary tones against moving too fast in a closely watched speech Monday.
Still-muted inflation and uncertain developments ahead "counsels prudence in the removal of policy accommodation," Brainard said, according to prepared remarks she was to deliver to The Chicago Council on Global Affairs. "I believe this approach has served us well in recent months, helping to support continued gains in employment and progress on inflation."
Chances of a rate hike at the Fed's next meeting immediately slumped after news of Brainard's speech broke.
After Boston Fed President Eric Rosengren spoke on Friday, the chances of a rate rise in September were seen at 30 percent, up from 24 percent before his comments.
Hedge funds and money managers increased their net long position in COMEX gold contracts to a nine-week high in the week to Sept. 6 and also raised a bullish stance in silver, U.S. Commodity Futures Trading Commission data showed on Friday.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.12 percent to 939.94 tonnes on Friday.
Spot silver gain 0.61 percent to $19.15 an ounce, having touched its lowest since Sept. 2 at $18.75. Platinum fell 0.73 percent to $1,050 and palladium was down 1.38 percent at $665.20, both at their lowest level in more than a week.
— CNBC's Jeff Cox contributed to this report.