By Sumit Saha
Gold nudged lower after hitting a two-week high earlier on Monday, as the U.S. dollar ticked up in anticipation of the Federal Reserve's last policy meeting minutes due later this week.
Spot gold TVC:GOLD was down 0.46% at $4,156.36 per ounce, as of 1123 GMT, after hitting $4,202.13, its highest since June 22 earlier in the session.
U.S. gold futures TVC:GOLD for August delivery rose 1.1% to $4,168.90 per ounce.
The U.S. dollar gained 0.2%, making greenback-priced bullion more expensive for holders of other currencies.
Saxo Bank analyst Ole Hansen said that gold is in a consolidation phase and a further easing in rate hike expectations is needed to support prices.
"Gold is trying to build a base with support in the $3,900-$4,000 range, while numerous levels of resistance await ahead of the big one, which remains the 200-day moving average at $4,485," he added.
The yellow metal rose more than 2% last week, ending a four-week losing streak after weak U.S. job growth data reduced bets for rate hikes.
Traders still see about a 56% chance of a rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool.
Higher interest rates tend to pressure the non-yielding metal.
The Fed's June 16-17 meeting minutes, the first chaired by Kevin Warsh, due on Wednesday, could give traders further insights into policymakers' rate outlook.
J.P. Morgan, in a note on Friday, said that demand for gold from key sectors would not be as strong as expected, with prices limited to $4,300/oz in the third quarter and $4,500 in the fourth quarter of this year.
Among other metals, spot silver BIST:XAGUSD1! fell 0.5% to $62.12 per ounce after hitting its highest since June 23 earlier.
Platinum NYMEX:PL1! 0.3% to $1,643.44 per ounce and palladium BIST:XPDUSD1! inched 0.7% higher to $1,282.97 per ounce.