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ETFs allows investors to gain exposure to gold bullion via an exchange, making the investment a little less risky than a pure play on the gold futures market.

Data showed that holdings in StreetTRACKS' New York product dropped just over 11 tonnes to 463 tonnes.

Traders and analysts also noted that spot gold had fallen through the important 200-day moving average technical level around $641.

"If it were to stay at this level when the U.S. market opens, you could see momentum sellers starting to go short," Bhar said, adding that gold risked a push right down to $630-620 -- levels unvisited since January.

"But we think $620 is where you then start to buy again."

Weeks said seasonal physical demand, which had been a good source of support when the market has stumbled recently, was starting to fizzle out. He added, however, that there was still good buying in the market in the mid-$630s.

Platinum hit its lowest in nearly a month at $1,261 an ounce. It last stood flat at $1,265/1,270.

Dealers are keeping a close eye on wage negotiations in top producer South Africa although analysts say the platinum market may have already priced in the effects of limited disruptions.

Palladium was at $365/368 an ounce versus $363.20/367.20.

(With additional reporting by Risa Maeda in Tokyo)