Gold lost some ground as US equities ended their five day losing streak and the oil price stabilised.
The publication of minutes from the latest US Federal Reserve meeting was also keeping a lid on the price, said traders.
Oil and the problems in Europe have kept the Fed in the background over the New Year, but when and by how much it decides to raise interest rates will be a key influence on gold this year.
Later this week the keenly watched non-farm payroll data for December is published.
The private figure from payroll firm ADP today showed another strong month, with 241,000 jobs created compared with 227,000 in November.
Jobs and the level of US employment are among the main criteria used by the Fed in judging the health of the US economy.
Non-farm payrolls Friday are expected to grow by 220,000 compared with 321,000 in November.
An hour after Wall Street opened spot gold was US$4 lower at US$1,214, with silver flat at US$16.53 and platinum US$3 lower at US$1,215.
Major movers
Randgold Resources up 66p at 4,825p
Fresnillo up 7p at 798p
Anglo American flat at 1,155p