Gold prices dropped on gains as the US dollar rallied on Monday after the precious metal hit its highest level in a month as a result of political uncertainty in the United States ahead of the Federal Reserve’s monetary policy meeting next week.
Spot gold settled at $ 1254.45 an ounce at the end of the US session after touching $ 1258.79, its highest level since June 23.
US gold futures fell 60 cents, or 0.05 percent, to settle at $ 1254.30 an ounce.
Traders are watching demand for gold in India, a major consumer of yellow metal, after the government began collecting a 3 percent gold tax on July 1.
Among other precious metals, spot silver rose 0.02 percent to $ 16.47 an ounce after climbing to $ 16.59, its highest level since July 3.
Platinum slipped 0.3 percent to $ 930.40 an ounce after hitting its highest since June 15 at $ 940.40 an ounce.
Palladium rose 0.7 percent to 850.75