The dollar rose to an 11-month high against a basket of major currencies.
USA gold futures were mostly unchanged at $1,223.40 per ounce.
The metal has fallen almost 9 percent from a November 9 high of $1,337.40 per ounce since U.S. President-elect Donald Trump's election win, as investors bet fiscal and trade policies under his administration would stoke inflation.
Gold for delivery in December fell 0.2% to $1,221.80 a troy ounce in recent market action after earlier falling to a session low of $1,211, the lowest since the beginning of June in already heavy early morning trading on the Comex market in NY.
Gold prices edged higher on Tuesday as investors snapped up bars and coins in a wave of physical buying after the metal dropped to its lowest level in almost six months in the previous session.
A broad sell-off in global commodities and surging bond yields had seen the metal dipping almost 3 percent on Friday.
"What we're seeing today is the continuation of long liquidation going through the market", said Jeffrey Halley, senior market analyst at OANDA.
Gold plunged more than 3% on Friday amid optimism that increased fiscal spending and tax cuts under a Trump administration will spur economic growth and inflation, which would ultimately lead to an era of higher interest rates.
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The market is now betting on the Federal Reserve raising interest rates more quickly. The metal is highly sensitive to rising United States interest rates, which can lift the opportunity cost of holding non-interest-bearing gold.
After a historic week in which US politics dominated market sentiment, of watching the Fed and economic data as expectations mount for a December rate hike.
Gold prices have been under pressure as the dollar has strengthened, with the dollar index rising to its highest level since December 2015 this week, as expectations for an interest rate increase at the December 13-14 FOMC meeting have steadily increased.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.76 per cent to 934.56 tonnes on Friday.
Spot gold was up 0.4 percent at $1224.76 an ounce at 0256 GMT.
"Gold will have to wait and see when Trump moves into the White House and what policies he will cancel", Natixis precious metals analyst Bernard Dahdah said. Earlier in the session, it touched its worst since June 9 at $17.00.
Platinum XPT= was down 1.2 percent at $928.50, after falling to $917.50, the lowest since late-February.