Gold futures on the COMEX division of the New York Mercantile Exchange fell sharply on Monday as the U.S. dollar and U.S. equities showed strength.

The most active gold contract for June delivery lost 27.40 U.S. dollars, or 2.12 percent, to settle at 1,266.60 dollars per ounce.

Gold was put under pressure as the U.S. dollar increased against most major currencies on Monday. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

The precious metal opened higher Monday. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Traders are looking ahead to the release of the Labor Department's Job Openings and Labor Turnover Survey on Tuesday, along with the weekly jobless claims report on Thursday, and retail sales and producer price index on Friday. All of these reports will be closely watched by the Fed as they decide when to raise interest rates.

About the other precious metals on Monday, silver for July delivery declined 43.80 cents, or 2.50 percent, to close at 17.089 dollars per ounce. Platinum for July delivery shed 38.30 dollars, or 3.53 percent, to close at 1,046.80 dollars per ounce.