Due to rising US bond yields, gold is moving away from its one-month high. Also, oil prices have fallen amid risk aversion.

Spot gold was down 0.5 percent at $1,862.29 an ounce by 0205 GMT. U.S. gold futures were also down 0.5 percent at $1,866.80. Gold, which is seen as a safe haven in times of economic crisis, hit its highest level since May 9 earlier in the session at $1,877.05 an ounce.

Bullion is often seen as a hedge against inflation, but the opportunity cost of holding it is higher when the Fed raises short-term interest rates, as gold earns no interest. Spot silver fell 1.1% to $21.63 an ounce, platinum fell 1.5% to $958.51 and palladium fell 2.1% to $1,894.72

Oil prices fell amid risk aversion, helping to set a floor on falling bonds and the rupee. Traders said some dollar selling interventions by state-owned banks on behalf of the central bank helped stabilize the rupee.