Gold is currently at $1,144.90 (-0.06%) near Friday's close level. Fed monetary policy will remain in focus today as several officials from the central bank are scheduled to speak this week.

In her latest speech Fed Chair Janet Yellen said that the U.S. economy was improving and that a rate hike before the end of the year was still probable. Data released on Friday supported this opinion. U.S. gross domestic product rose by 3.9% y/y in the second quarter compared to a 3.7% growth pace in the first quarter.

Higher interest rates would decrease demand for non-yielding bullion.