The yellow metal continued to witness selling after policy maker Federal Reserve (Fed) continued to support further tightening of the policy.
This was demonstrated in the decline in gold prices to an almost one-month low of $1,900 per ounce, while gold forward trade was also little changed at $1,918 per ounce.
Most recently, on Tuesday, Minneapolis Federal Reserve (Fed) President Neel Kashkari said there was a strong possibility that interest rates would need to move significantly higher to reduce inflation.
This indirectly indicates that rates may rise higher next year amid a resilient United States economy.
The outlook also supported the US 10-year treasury yield to remain high at its strongest level in 16 years and the US dollar continued its strengthening further to its latest 10-month high against major currencies.
Moving forward, investors will focus on US durable goods orders data on Wednesday which will provide guidance on the health of the country's manufacturing sector.
