SINGAPORE: Gold steadied on Monday after two consecutive sessions of losses but remained below the key $1,300-an-ounce level, weighed down by strong US economic data and waning investor interest.
Platinum group metals added to gains after posting their strongest weekly performance in six weeks on supply worries from South African labour strikes.
Spot gold ticked up 0.1 percent to $1,294.90 an ounce by 0334 GMT, while platinum gained about 0.4 percent. Palladium rose 0.2 percent.
Data on Friday showed that US housing starts jumped in April and building permits hit their highest in nearly six years, offering hope the troubled housing market could be stabilizing, though another report showed that consumer sentiment fell in May.
"With generally bright US economic data and euro zone's impending stimulus propping up dollar prospects, we are more inclined to a bearish break in gold prices," said Phillip Futures analyst Joyce Liu.
"That said, the Ukraine crisis continues to provide underlying support and any hint of escalation may spur gold prices above $1,300 again."
Gold, often seen as a safe-haven investment, has gained 7.5 percent so far this year from tensions between Russia and the West over Ukraine though it has fallen back recently due to outflows from gold funds and strong data.
SPDR Gold Trust, the world's top gold-backed exchange-traded fund, said its holdings fell 0.26 tonnes to 781.99 tonnes on Friday, in a sign of softening investor demand.
Hedge funds and money managers cut their bullish bets in gold futures and options, according to data from the Commodity Futures Trading Commission on Friday.
Labour strikes continued in South African mines producing platinum and palladium.
Impala Platinum described as "devastating" the impact on its employees of a 16-week strike at its main South African operation in Rustenburg and said it had lost more than $500 million in revenue.
The company signalled it expected the strike, prompted by the fall-off in wage negotiations, to continue.
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