Gold fell 1% on Monday, languishing near seven-month lows to kick off the last quarter of the year, as a stronger U.S. dollar and prospects of interest rates staying higher for longer erode bullion's appeal.
Spot gold was down 0.9% by 0933 GMT to $1,831.81 per ounce, its lowest since March 10. U.S. gold futures slipped 1% to $1,847.50.
The dollar index was up 0.1%, holding near a 10-month high against its rivals and making gold more expensive for other currency holders.
"The main topic pulling down the gold price is related to the fact that markets are realizing that interest rate will remain high for a long time," said Carlo Alberto De Casa, market analyst at Kinesis Money.
"I see the possibility for gold to remain under pressure in the short term ... there could be space for further declines up to $1,800 per ounce."
Since powering above the key $2,000-per-ounce level in early May, gold prices have fallen more than 11%, or $230, pressured by a sharp rise in benchmark U.S. Treasury yields, which makes the non-yielding gold less attractive.
Traders, however, expect the U.S. Federal Reserve will not increase short-term borrowing costs beyond the current range of 5.25%-5.50% after data showed underlying inflation in August continued to ease.
Futures contracts suggest Fed rate cuts are not likely before June 2024.
The focus now will be on Fed Chair Jerome Powell's speech later in the day as well as on job openings data, private hiring numbers and U.S. nonfarm payrolls over the course of the week.
Among other precious metals, spot silver slid 2.7% to a more-than-six-month-low of $21.56 per ounce, while platinum fell 0.7% to $898.08 and palladium dipped 1.1% to $1,232.36.
(Reporting by Brijesh Patel and Anjana Anil in Bengaluru; Editing by Savio D'Souza)