The most active gold contract for June delivery fell 4.40 U.S. dollars, or 0.22 percent, to close at 1,977.20 dollars per ounce.
U.S. President Joe Biden and key Republicans are scheduled to continue their debt ceiling negotiations Monday afternoon.
In a moderated discussion at the American Gas Association's Financial Forum in Fort Lauderdale, Florida, St. Louis Fed President James Bullard said he would like to see two more 25-basis-point interest rate hikes this year.
"I think we're going to have to grind higher with the policy rate in order to put downward pressure on inflation," Bullard said, adding the timing of the rate hikes is uncertain but he has been an advocate of raising rates "sooner rather than later."
During a discussion Monday at the International Economic Symposium hosted by the Bank of France and the National Association for Business Economics, San Francisco Federal Reserve President Mary Daly said she wants central bankers to keep an open mind when they gather in June to decide what to do with interest rates at that meeting and at the other four policy meetings scheduled for this year.
The best policy for the Fed now "is about extreme data dependence and policy optionality," Daly added.
Investors are waiting for the minutes of the Federal Reserve's May monetary policy meeting to be released Wednesday, U.S. gross domestic product on Thursday, and key inflation data on Friday.
Silver for July delivery fell 19.90 cents, or 0.83 percent, to close at 23.861 dollars per ounce. Platinum for July delivery rose 1.60 dollars, or 0.15 percent, to close at 1,077.30 dollars per ounce.
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