The most active gold contract for June delivery fell 48.1 U.S. dollars, or 2.52 percent, to close at 1,863.6 dollars per ounce.
The U.S. dollar index has climbed to near a 20-year high, inducing the biggest daily percentage decline for gold on Monday since March 9.
The Federal Reserve will conclude a two-day monetary policy meeting on Wednesday. Investors widely expect the central bank will raise the policy rate by 50 basis points.
Disappointing economic data released on Monday failed to support gold. The S&P Global U.S. manufacturing purchasing manager's index (PMI) increased to 59.2 in April from 58.8 in March, the highest level since September 2021, but was slightly down from its preliminary reading of 59.7.
The Institute for Supply Management's manufacturing index registered at 55.4 percent, a decrease of 1.7 percentage points from the March reading of 57.1 percent.
Silver for July delivery fell 50.1 cents, or 2.17 percent, to close at 22.584 dollars per ounce. Platinum for July delivery fell 6.8 dollars, or 0.72 percent, to close at 932.8 dollars per ounce.
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