Gold prices edged down for a second straight session on Monday as the U.S. dollar firmed, while authorities attempted to assuage investor fears of a widespread crisis in the global banking sector, APA reports citing Reuters.
Spot gold was down 0.1% at $1,975.59 per ounce, as of 0350 GMT. U.S. gold futures fell 0.3% to $1,977.90.
The dollar index was largely steady and made bullion less affordable for overseas buyers.
"Markets continue to adopt a cautious stance... On net, the mix of growth worries, lingering concerns of banking stresses could benefit safe-haven proxies such as USD, JPY and gold in the interim," said OCBC FX strategist Christopher Wong.
Markets are pricing in a nearly 90% chance of the Fed standing pat on interest rates at its May meeting, according to the CME FedWatch tool.
While gold is considered a hedge against inflation and economic uncertainties, higher interest rates tend to discourage investment in non-yielding bullion.
Spot silver fell 0.6% to $23.08 per ounce, platinum was 0.2% lower at $974.60 and palladium slipped 0.7% to $1,405.48.