The dollar rose against the yen and euro as some investors emerged out of the holiday lull to hunt for bargains as the market entered the last trading stretch of the year.
The U.S. currency had climbed to a 10-month high of 118.660 yen mid-month on expectations of stronger growth after Trump takes office in January. A firm dollar curbs demand for commodities priced in the greenback by making them more expensive for holders of other currencies.
"People are waiting until Trump becomes the U.S. president and until we see his real policies or what he will do when he takes the office," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.
"People are just watching the other markets like dollar and stock markets and kind of expecting the stock market and financial market to be good under Trump government. In that case, people don't need gold and instead invest in stocks."
Among other precious metals, silver was up 1.2 percent at $15.91 an ounce- its biggest daily rise since Dec. 12.
Platinum gained 1.3 percent to $900, snapping six straight sessions of losses.
Palladium rose nearly a percent at $662 an ounce, on track for its biggest one-day rise in two weeks.