Gold futures declined by as much as $5 on Monday (June 25) morning, a reaction to falling crude oil prices, MarketWatch reports.
On the New York Mercantile Exchange, gold for delivery in August was down $3.20 at $653.80 per ounce, having reached a low of $651.60.
When the Federal Reserve meets later this week to discuss the possibility of interest rates, it is likely to give gold investors an indication of possible future interest rates and will determine which way the price of gold goes.
"Everyone's on hold until we get word out of the Fed about their take on the slowing economy and just how much inflation is present in the system," said Blanchard's head of economic research, Neal Ryan.
"From a fundamental standpoint, we're going to start getting some company reports in the next week along with some production figures updated from countries."
Although the Fed is unlikely to hike rates this time round, a future rise would make gold a more attractive investment prospect.