However, higher oil prices underpinned the market and analysts said gold had potential to advance in the near term.
"Oil prices have firmed a little bit and also we saw the nuclear test from North Korea overnight," John Reade, precious metals analyst at UBS Investment Bank, said.
"I think there are lots of reasons why you want to be long in gold at the moment ... also because we continue to see extremely strong physical demand," he said, referring to long positions held by investors who expected prices to rise.
Spot gold
Gold, which is seen as a safe asset in difficult times, reacted on news that North Korea conducted an underground nuclear test on Monday.
The White House branded the act as "provocative" and said it expected the U.N. Security Council to take immediate action.
"Everybody is a bit tense. When the U.S. wakes up, you may see rhetoric from them. Gold may even rise to $585," a dealer in Singapore said.
NORTH KOREAN IMPACT
News of the North Korean test, as well as plans by the Organization of Petroleum Exporting Countries to cut production, helped crude oil jump about one percent to above $60 a barrel.
Gold is often seen as a hedge against inflation and has tracked oil in recent weeks. It dropped to its lowest in more than three months at $559.40 on October 4, when crude oil tumbled to an eight-month low.
"Today's outlook for gold doesn't seem as bad as in the last days... Negative bias could only come from the dollar but technically there does not seem to be a lot of upside potential for the latter," Dresdner Kleinwort said in a daily note.
The euro firmed slightly against the dollar after hitting a 2-1/2-month low on Friday after U.S. non-farm payrolls data showed upward revisions to past employment growth and left the labor market looking tighter than previously thought.
Other precious metals tracked gold. Silver
Platinum
Norilsk Nickel
