The precious metal hit a low of $1241.71 an ounce, while currently trading around $1242.76 from the opening at $1248.62.

Gold posted its sharpest weekly fall in two months last week, while currently on track for its biggest monthly decline since November as recent comments from Fed officials supported the case the Fed would raise rates as soon as convenient.

Both Philadelphia Fed President Patrick Harker and San Francisco counterpart John Williams mentioned on Monday the Fed could hike interest rates two or three times in 2016.

Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.

Eyes will focus on a speech by Fed Chair Janet Yellen speaks at Harvard University on Friday, as investors aim to get further clues whether the Fed would hike interest rates in June.

The dollar soared to a two-month high of 95.53, according to the dollar index, thereby denting the appeal of the metal as an alternative investment.

Meanwhile, the dollar index, which tracks the green currency’s movements against a basket of major currencies, is trading around 95.42.

A report from the U.S. due later in the day may signal a rise in new home sales to 521,000 in April from 511,000 in March.

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