Gold fell on Monday as stock markets rallied on the back of Friday's stronger-than-expected US jobs data and the prospect of more monetary stimulus from central banks, while the dollar rose against a basket of currencies.
Simmering concerns over the prospect of Britain leaving the European Union kept gold underpinned, however, keeping prices within $20 of last week's more than two-year high.
Spot gold was down 0.8 percent at $1,355.50 per ounce by 2:31 pm EDT (1831 GMT), having touched its highest since March 2014 last week at $1,374.91 an ounce.
US gold futures for August delivery settled down 0.1 percent at $1,356.6 per ounce.
"New highs in US bonds and the stronger than expected jobs report have raised the odds of a rate hike later this year," said Saxo Bank head of commodities research Ole Hansen.
"But the strong response to the weakness post non-farm payrolls on Friday was a clear signal that buyers are still lurking around, waiting for the opportunity to pick gold up cheaper."
silver contracts to record highs in the week to July 5, after Britons voted to leave the EU.
Silver was up 0.09 pct at $20.28 an ounce. Platinum rose as much as 0.7 percent to a 13-month high at $1,103.80 an ounce, while palladium climbed 1.6 percent to a two-month high of $625.