Gold settled with a loss on Monday, giving up earlier modest gains as traders looked ahead to the outcome of the Federal Reserve's meeting later this week.
Traders also kept an eye on geopolitical developments, including the U.K.'s efforts to reach a deal on leaving the European Union, and the direction of the U.S. dollar.
Gold for April delivery GCJ9, -0.20% on Comex fell $1.40, or 0.1%, to settle at $1,301.50 an ounce after trading as high as $1,306.70. May silver SIK9, -0.24% shed a fraction of a cent to $15.322 an ounce.
"We are somewhat suspicious of the recent gains in gold as global political uncertainty seems to be moderating and economic data seems to be more deflationary than anxiety ridden," analysts at Zaner Precious Metals said in a note.
The ICE U.S. Dollar Index DXY, +0.08% a measure of the U.S. currency against a basket of six major rivals, was little changed, but traded around 0.5% higher month to date. A stronger dollar can be a weight on to commodities priced in the unit, making them more expensive to users of other currencies.
The Fed's rate-setting committee will conclude a two-day meeting on Wednesday, with investors focused on a policy statement, remarks by Fed Chairman Jerome Powell and the collection of policy makers' rate forecasts known as the "dot plot." Investors expect the Fed to maintain the dovish tone its struck in January, when it effectively put its rate-hiking plan on pause to take a wait-and-see approach.
Also see: Fed seen revealing 'how and when' it will stop shedding balance sheet assets
Gold rallied Friday, leaving it 0.3% higher for the week, while silver lost 0.2%.
Analysts continue to keep an eye on U.S.-China trade developments, with news reports over the weekend saying that a meeting between President Donald Trump and Chinese leader Xi Jinping was unlikely to happen until June. A meeting had previously been expected this month.
Investors were also keeping an eye on Brexit, with Prime Minister Theresa May's plan to bring her previously rejected proposal for an agreement dictating the U.K.'s relationship with the EU up for another vote was blocked Monday by House of Commons Speaker John Bercow. U.K. lawmakers last week rejected the prospect of exiting without an agreement and called for an extension of the country's Brexit date from March 29 - a move that will require the unanimous approval of the EU's other 27 members.
In other metals trade, April platinum PLJ9, +0.09% rose $2.20, or 0.3%, to $834 an ounce. June palladium PAM9, +0.17% added $21.20, or 1.4%, to $1,538.70 an ounce-another record settlement.
"The palladium market continues to show very consistent bullish action on the charts with a five day pattern of higher highs and higher-lows," the Zaner Precious Metals analysts said. "An issue that might lend some support to the [platinum group metals] complex this week, are indications that South African power cuts are expected to continue as the primary power generating company remains in a state of chaos."
May copper HGK9, -0.26% ended less than half a cent higher at $2.909 a pound.
Among exchange-traded funds, SPDR Gold Shares GLD, +0.28% was little changed, while the VanEck Vectors Gold Miners ETF GDX, +0.36% lost 1.1%.