Gold retreated further on Monday from a 14-month peak hit in the previous session as the dollar strengthened on strong US retail sales data before the US Federal Reserve meeting this week.
Spot gold was down 0.6pc at $1,333.81 per ounce at 0946 GMT. Gold had hit $1,358.04 on Friday, its highest since April 11, 2018.
US gold futures slipped 0.5pc to $1,341.70 an ounce.
"After weeks of positive movement we are seeing a correction in gold prices, however, the trend remains positive," said ActivTrades analyst Carlo Alberto De Casa.
People are also waiting for any news coming from the US central bank, De Casa said, adding that investors are betting on one and even two rate cuts this year and it would be a good signal for gold if Fed Chair Jerome Powell could confirm that.
Expectations of a rate cut at the US Fed's June 18-19 meeting fell to 21.7pc from 28.3pc on Thursday after the retail data, according to CME Group's FedWatch tool. But bets for monetary easing at the July meeting remain at 85pc.
Also weighing on bullion's appeal was a firmer dollar , which was holding near a two-week high as strong economic data last week led investors to reassess whether the Fed will sound as dovish as expected at this week's meeting.
Spot gold may retest a support at $1,337 per ounce, a break below this level could result in a fall to $1,324, according to Reuters technical analyst Wang Tao.
The US Trade Representative's Office on Monday will kick off seven days of testimony from US retailers, manufacturers and other businesses about President Donald Trump's plan to hit another $300 billion worth of Chinese goods with tariffs.
"US-China trade tension is supportive factor for the gold market, the unresolved trade dispute and any escalation is likely to increase demand for gold," said Michael McCarthy, chief market strategist, CMC Markets.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.6pc to 764.10 tonnes on Friday from 759.70 tonnes on Thursday.
Hedge funds and money managers also raised their net long positions in COMEX gold in the week to June 11, the US Commodity Futures Trading Commission (CFTC) said on Friday.
Silver fell 0.5pc to $14.79 per ounce, while platinum was steady at $798.74.
Palladium dipped 0.3pc to $1,460.30 per ounce.
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