Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday amid expectations for the U.S. Federal Reserve's rate hike later this week.

The most active gold contract for August delivery fell 2.5 U.S. dollars, or 0.2 percent, to settle at 1,268.90 dollars per ounce.

Investors are primarily focused on the expectations for the Federal Reserve's rate hike during their two-day meeting ending Wednesday.

According to the CME Group's FedWatch tool, the current implied probability of a hike from 0.75 to 1.0 is at 95.8 percent at the June meeting.

Higher interest rate is negative for gold, as it will curb the appeal of the precious metal.

However, the decline of gold futures was limited by the fall the U.S. Dow Jones Industrial Average. It fell by 81.90 points, or 0.39 percent as of 1625 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven.

Silver for July delivery dropped 27.9 cents, or 1.62 percent, to close at 16.994 dollars per ounce. Platinum for July delivery rose 4.2 dollars, or 0.45 percent, to close at 944.5 dollars per ounce.