Gold eased in early trading heading towards the $2,725 level after its rally last weekend that could potentially open new highs.
The yellow metal's weakness may be due to ongoing geopolitical tensions in the Middle East and the uncertainty of the US presidential election.
At 9.25 am, the price of gold was at $2,727.90 which is down 0.73% since it opened at the beginning of Monday trading in the Asian session.
Israeli Prime Minister Benjamin Netanyahu said that Saturday's attack on Iran had severely damaged Tehran's defenses.
Iranian officials vowed to retaliate, saying they did not want the war to spread further.
Geopolitical risks and uncertainty surrounding the upcoming US presidential election could provide some support to traditional safe-haven assets such as gold.
Purchases of Gold reserves among central banks and increased demand from investors have pushed up the price of the yellow metal.
The World Gold Council suggests that central banks around the world buy more than 1,000 tons of gold every two years and China tops the list of countries looking to increase their gold reserves every year.
Additionally, a slower pace of rate cuts from the US Fed amid stronger economic data could weigh on the yellow metal's position.
