Gold prices on Monday held near a one-week low hit in the previous session, as the dollar firmed after largely upbeat US economic data reinforced the prospects of another rate hike by the Fed next month.
Spot gold was down 0.1 per cent at $1,268.61 per ounce as of 0740 GMT. On Friday, the precious metal touched a one-week low of $1,265.16.
US gold futures for December delivery were nearly unchanged at $1,269, reports Reuters.
The dollar index, which measures the greenback against a basket of six major currencies, last stood at 94.990, trading within sight of an Oct 27 peak at 95.150, a more than three-month high.
The dollar touched its highest level in nearly eight months against the yen.
Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.
Analysts said the yellow metal could find support after US President Donald Trump, who kicked off a 12-day Asia trip, looked to present a united front with Japan against North Korea.
Meanwhile, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.03 per cent to 845.75 tonnes on Friday.
Among other precious metals, spot silver inched 0.4 per cent higher to $16.86 an ounce, platinum was flat at $918.50, while palladium was up 0.2 per cent at $998.50.
