Gold prices fell from a three-week peak on Monday as expectations of a limited U.S. coronavirus relief bill dented the appeal of bullion, which is used as a hedge against likely inflation.
Spot gold fell 0.3% at $1,924.41 per ounce by 10:14 a.m. EDT (1414 GMT), after hitting its highest since Sept. 21 at $1,932.96. U.S. gold futures rose 0.2% of $1,930.70.
The U.S. government and bond market is closed on Monday for Columbus Day.
The possibility of a smaller U.S. coronavirus stimulus bill is weighing on gold, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
"We are talking trillions (in stimulus) one day and it's billions the next day and it will (probably) be millions next, it feels like it is getting smaller coming into the election," Streible said.
The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill using leftover funds, as negotiations on a broader package ran into resistance.
Gold has gained over 26% so far this year helped by stimulus from governments and global central banks as it considered a hedge against inflation risks and currency weakening.
Meanwhile, Wall Street's main indexes opened higher on optimism about a fiscal stimulus deal in Washington. .N
Investors were also keeping a close eye on the upcoming U.S. elections, where Democrat Joe Biden is seen as more likely to win.
"Gold will be higher if Biden wins because he will spend a lot of money," said Bob Haberkorn, senior market strategist at RJO Futures, adding any unknowns on the election night will also provide support.
Among other precious metals, silver slipped 0.2% to $25.07 per ounce, platinum fell 0.9% to $878.50, while palladium edged 0.3% higher to $2,446.73.
(Reporting by Sumita Layek in Bengaluru Editing by Marguerita Choy) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8061822693; Reuters Messaging: Sumita.Layek.firstname.lastname@example.org))