Gold struggled to make progress despite more unease in Ukraine, where the Kiev government circulated photos of what it identified as Russian soldiers operating in the east of the country.
Spot gold was still trading around the US$1,290 mark ahead of the start of US trading, similar to where it closed on Friday.
Commerzbank said the noticeable increase in yields on 10-year US Treasuries at the end of last week may have contributed to its recent weakness as has the renewed exodus from exchange traded funds.
“Gold ETFs are continuing to see almost daily outflows. So far, they have totalled over 24 tons in April.
“Money managers have likewise been withdrawing further from gold: in the week to 15 April, net long positions were reduced for the fourth week in a row and now total 73,000 contracts – a two-month low.
“In other words, the gold price is still facing headwind,” the broker concluded.
Barclays is also set to streamline its gold and other commodities activities as part of a review by chief executive Anthony Jenkins that will see businesses that don’t pay their way to be sidelined.
Precious metal trading will become part of the foreign exchange arm, according to the reports, with the scale of the operation to be much reduced.
Five of the top banks involved in commodity trading are retrenching or seeking to sell their businesses currently.
Elsewhere, silver was a touch higher at US$19.72, while platinum was US$7 higher at US$1,404.
Platinum miners in South Africa, meanhwile, have made a new offer to the AMCU members who have been on strike for over twelve weeks.
The offer would double entry-level wages by 2017 and Commerzbank wonders how these additional costs could be absorbed by a struggling sector.
Meanwhile, a report in the FT suggested Anglo American is mulling ways to extricate itself from its deep platinum mines in Rustenburg, South Africa.
Talks with the South African government are said to be underway over the possible impact. Rustenburg accounted for about a fifth of platinum arm Amplats' production last year, even though two mines closed.
Major movers
Rangold Resources down 44p at 4,674p
Fresnillo down 2p at 866p
Anglo American down 5p at 1,541p