Gold eased on Monday as the prospect of a fractured parliament in Germany following Chancellor Angela Merkel's less than resounding election victory over the weekend knocked the euro lower.
Consequent dollar strength helped push gold back towards Thursday's low of $1,287.61 an ounce, its weakest since Aug. 25, which fed into a second straight weekly decline for the metal.
Gold has now slipped nearly 5 percent from the more than one-year high it hit on Sept. 8, largely on the back of concerns over North Korea's nuclear ambitions, which have now waned.
"If the dollar continues to rally and North Korea stays quiet, gold can continue to fall," David Govett, head of precious metals at Marex Spectron, said. "But all it will take is one missile launch or similar, and we will rally back up above $1,300 again."