Gold slid to $1,113.70 (-0.17%) as strong U.S. retail sales data boosted the dollar and raised expectations of an interest rate hike by the Federal Reserve in the near future. Gold and the greenback typically move in opposite directions and the dollar's strength suggests the bullion's weakness. In addition to that higher interest rates would harm demand for the non-interest bearing precious metal.

Commerzbank analyst Eugen Weinberg said that the devaluation of the yuan is positive for gold in the longer term if it stimulates demand for bullion as a safe haven from currency volatility; however dollar strength keeps the metal under pressure.