The most active gold contract for December delivery dropped 26.7 U.S. dollars, or 1.79 percent, to close at 1,466.4 dollars per ounce.
A stronger greenback also limited safe haven buying of the bullion.
The U.S. dollar index, which measures the buck against six rivals, went up 0.21 percent to 98.16 as of 1830 GMT.
Gold usually trends in the opposite direction of the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.
As for other precious metals, silver for December delivery decreased 58.8 cents, or 3.34 percent, to close at 17.01 dollars per ounce; platinum for January delivery fell 17.7 dollars, or 1.9 percent, to settle at 914 dollars per ounce.