By Sumit Saha
Gold reversed course 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 0.6% at $4,148.73 per ounce, as of 0900 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 0.8% to $4,160.40 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 the bullion is in a consolidation phase after having risen more than 2% last week and ending a four-week losing streak after weak U.S. job growth data reduced bets for rate hikes.
Traders 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.
A further easing in rate hike expectations is needed to support bullion, which for now continues to consolidate, said Hansen.
Higher interest rates tend to pressure the non-yielding metal.
"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," said Hansen.
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 0.7% to $61.96 per ounce after hitting its highest since June 23 earlier.
Platinum NYMEX:PL1! declined 0.2% to $1,635.47 per ounce and palladium BIST:XPDUSD1! rose 0.1% to $1,275.21 per ounce.