Gold prices edged lower on Monday as a stronger dollar overshadowed growing fears of a U.S. government shutdown and fresh concerns about the health of China's property sector.
Spot gold slipped 0.2 percent to $1,922.62 per ounce, while U.S. gold futures were down 0.2 percent at $1,941.95.
The dollar hit new multi-month highs against a basket of major world currencies following hawkish comments on interest rates from the Federal Reserve and other central banks.
As oil prices edge towards $100 a barrel, investors remain concerned that the Federal Reserve will have to keep interest rates higher for longer than previously anticipated.
Amid much uncertainty about the outlook for rates, investors await the Fed's preferred inflation readings, a speech from Fed Chair Jerome Powell, Q2 GDP final estimate and other reports on new home sales, durable goods orders and consumer confidence this week for direction.
Markets also braced for a U.S. government shutdown, with the White House warning of severe economic consequences if Congress fails to pass a funding bill by an October 1 deadline.
Elsewhere, concerns about China's property market returned to the fore after China Evergrande Group, the world's most indebted property developer, said it was unable to issue new debt due to an ongoing investigation into its main domestic subsidiary, Hengda Real Estate Group Co.
