Gold prices fell for a third day on Monday to their lowest since mid-March after strong economic data in the United States and Germany bolstered expectations that central banks will raise interest rates.
Gold is highly sensitive to rising rates because they push up bond yields, increasing the opportunity cost of holding non-yielding bullion. They also tend to boost the dollar, in which gold is priced.
Spot gold, which dropped 2.3 percent last week, was up 0.05 percent at $1,213.41 per ounce, having earlier touched $1,204.45, its lowest since March 15.
U.S. gold futures for August delivery settled at $1,213.20 per ounce.
"On the mind of the gold market is central bankers striking a more hawkish tone. Investors are now pricing in monetary tightening from most central banks," said Danke Bank analyst Jens Pedersen.
The rationale for tightening was bolstered by better than expected U.S. jobs data and strong German export figures.