The main culprit: a stronger US dollar and rising crude oil prices, sparked by failed U.S.-Iran peace talks that pushed oil above $100 a barrel.
This has investors worried about inflation and fewer chances of US interest rate cuts: bad news for non-yielding assets like gold.
While global tensions usually boost gold, higher interest rates and a strong US dollar are making it less attractive right now.
Other metals had mixed moves: platinum dipped slightly but palladium edged up.