Gold price traded lower despite further stimulus measures from China. The People's Bank of China (PBOC) cut its one-year lending rate by 25 basis points to 5.1% on Sunday. It lowered the benchmark deposit rate by 25 basis points to 2.25%. It was third interest rate cut in six months.

China's central bank noted that the country's economy is still facing "relatively big downward pressure".

"At the same time, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average," the central bank added.

The Greek debt crisis remains in focus. The Eurogroup meeting is scheduled to be today. It is unlikely that the €7.2 billion tranche of loans will be unlocked at this meeting because there are still differences despite the progress of negotiations.

German Finance Minister Wolfgang Schaeuble said on Monday that a referendum on the Greek bailout in Greece may be helpful. "If the Greek government thinks it should have a referendum, then it should organize a referendum," he noted.

Schaeuble ruled out any deal between Greece and its creditors at today's Eurogroup meeting as "there is not sufficient progress".

Greece must repay the IMF €750 million loan on May 12. Athens said that it has enough money to pay the IMF this week.

June futures for gold on the COMEX today fell to 1183.10 dollars per ounce.