Gold prices traded mixed on Monday, after having hit five-month highs last week on heightened geopolitical tensions.
Spot gold dropped half a percent to $1,996.34 per ounce, while U.S. gold futures were up 0.4 percent at $2,006.
Israeli troops have entered the Gaza Strip for the first time in nearly two decades, but it's unclear whether the maneuvers mark the official start of an invasion.
After U.S. airstrikes targeted Iranian targets in Syria last week, there were fears that tensions could spread into a wider conflict.
The U.S. has advised Israel to delay ground invasion in Gaza to allow hostage negotiations.
The United Nations Security Council is due to be briefed on the humanitarian situation in Gaza today.
The Federal Reserve's monetary policy decision along with reports on manufacturing and service sector activity remain in the spotlight this week amid fears of a looming recession.
The highly anticipated Federal Reserve interest-rate decision is due on Wednesday, with no change expected.
Traders expect the Bank of Japan to tweak its yield curve control policy when it wraps up a two-day policy meeting on Tuesday.
The Bank of England is to hold its penultimate meeting of the year on Thursday, with economists anticipating a 'status quo policy update.'
