 "Gold holds steady as stocks, other metals suffer")
Gold steadied on Monday with investors looking for a safe haven as fresh speculation about a near-term US rate hike weighed on equities and other assets.
Spot gold held steady at $1,327.92 an ounce at 0930 GMT. US gold futures edged 0.3 per cent lower at $1,330.60 an ounce.
A chorus of hawkish comments from Fed officials kept expectations alive for a September rate hike despite a recent spate of disappointing economic data.
After Boston Federal Reserve President Eric Rosengren spoke on Friday, odds on a rate hike in September rose to 30 per cent probability from 24 per cent before his comments.
"The gold markets looked at other markets and thought the panic is a reason to hold gold. On the other hand, markets are thinking there might be a rate hike," said Citigroup analyst David Wilson, adding that the metal held up well compared to other commodities.
"There are still a lot of risk issues out there that investors are concerned about, whether its currency devaluation and search for yields."
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Gold, often seen as an alternative investment during times of geopolitical and financial uncertainty, benefited from the risk-averse sentiment in the market along with other haven assets such as the Japanese yen and US Treasuries.
Fed governor Lael Brainard is scheduled to give a talk in Chicago later on Monday, a day before the central bank's communications blackout period takes effect.
There is chance for some more volatility ahead with Brainard's speech, MKS PAMP Group said in note.
"If rate concerns really rattle the financial markets, more profound equity market declines could set off renewed 'safe-haven' purchases," HSBC analyst James Steel said, adding that a hawkish speech could put gold under selling pressure.
Hedge funds and money managers hiked their net long position in COMEX gold contracts to a nine-week high in the week to Sept. 6, and they also raised a bullish stance in silver, US Commodity Futures Trading Commission data showed on Friday.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.12 per cent to 939.94 tonnes on Friday.
Spot silver shed 0.4 per cent to $18.95. The metal touched its lowest since September 2 at $18.75 per ounce.
Touching their lowest in over a week, platinum fell 0.7 per cent to $1,050 an ounce and palladium was down 1.6 per cent at $663.88, also both at their lowest in over a week.