Gold erased all the gains made following last week's Federal Reserve (Fed) decision to trade lower in the Asian session today.
The rally was recorded after strong US NFP jobs data in April pushed gold prices further down from the all-time high of $2,081 reached on Thursday.
The yellow metal dipped to $2,000 an ounce on Friday, before returning to steady trading around $2,018 in early Monday trading.
The drop followed a larger increase in employment of 253,000 in April than market expectations for a rise of just 181,000.
Meanwhile, the unemployment rate decreased to 3.4% from 3.5% previously and the expected 3.6%. Average hourly earnings in the US increased at an annual rate of 4.4%.
This in turn drove the 10-year US treasury yield to a stronger level at 3.43%.
Investors now await the release of US inflation data on Wednesday for the next indication of the Fed's upcoming policy setting.
Last week, the Fed decided to raise interest rates by 25 basis points to 5.25% in an indication that it will end its tightening cycle.
However, Chairman Jerome Powell said that the central bank's next decision will depend on incoming data.
