The US dollar's decline has helped gold trade recover from the one-month lows it touched earlier in the week.
However, price-declining factors including the strengthening of the US dollar, higher US treasury yields and the hawkish stance of the Federal Reserve (Fed) still control the precious metals market.
At the time of writing, spot gold was trading around $1,735 per ounce in the Asian session, while gold futures were slightly lower at $1,748 per ounce.
The US dollar retreated slightly from the 20-year high it hit on Monday, possibly due to profit-taking by investors towards the end of August trading.
In the meantime, the market is also cautious ahead of the main data for the week which is the US NFP jobs report on Friday.
Overall, the US dollar is still strengthening with support from investors' confidence that the US central bank will continue to raise interest rates to curb inflation.
As a result, the movement of gold will probably continue to be limited to around the lowest level.
At the Jackson Hole symposium last week, Chairman Jerome Powell emphasized that the Fed would extend tightening and leave it high for some time to keep inflation down to the central bank's 2% target.
