Gold prices fell for a second consecutive week as traders monitored progress toward a US-Iran deal and President Donald Trump's plan to guide ships through the Strait of Hormuz.
Bullion dropped as much as 0.9% and traded around $4,575 an ounce in early European hours on Monday.
Trump's plan to guide ships through the Strait of Hormuz, starting Monday, has raised hopes for a resolution to the Iran conflict, which has kept energy prices elevated and dimmed hopes for interest-rate cuts by central banks.
A stronger dollar and oil-driven inflation fears are prompting hawkish signals from major central banks, said Manav Modi, commodities analyst at Motilal Oswal Financial Services Ltd.
Traders will focus on this week's announcement of the US Treasury Department's borrowing plans, Federal Reserve speakers, and economic releases, including monthly employment data.
Despite recent slumps, many market watchers remain positive on the metal's longer-term outlook, supported by buyers who have continued purchases.
Central banks added gold holdings at the fastest pace in more than a year in the first quarter, while Tether Holdings SA extended a buying streak that made it the largest known holder of bullion in the world outside of banks and nation states.
Spot gold dipped 0.8% to $4,577.33 an ounce as of 9:09 a.m. in London, while silver fell 1.4%, platinum, and palladium also declined.
