Gold edged up slightly after falling lower last week hit by a jump in US 10-year bond yields and a strengthening US dollar.
In the Asian session, the yellow metal was trading hovering at $1,650 per ounce, while gold futures were little changed at $1,655 per ounce.
The 10-year US bond yield broke above 4% on Friday for the first time since October 2008, while the dollar index neared a 20-year high after last week's economic data strengthened the outlook for a rate hike by the Federal Reserve (Fed).
In response, gold fell as low as $1,640 an ounce before recovering slightly in Asian trading today.
Analysts see this situation as increasingly dangerous for gold trading which has the potential to fall lower following the continued strengthening of the US dollar.
Markets continue to maintain expectations for a 75 basis point increase in December after seeing stronger-than-expected US inflation data readings last week.
