The benchmark October gold contract on the Tokyo Commodity Exchange finished down 12 yen per gram at 1,744 yen, after moving between 1,740 yen and 1,748 yen.
Other months fell by eight to 13 yen. "Profit-taking also gained momentum after the yen recovered from the 118-yen level," a Tokyo analyst said.
The dollar marked a two-year high against the yen, but soon came of the fresh peak, as traders took the opportunity to book profits on its surge of nearly three yen last week.
The dollar climbed as high as 118.38 yen, it's highest since late August 2003. The dollar was fetching 117.83/117.87 yen against 118.29/118.32 yen in late New York trade.
Gold futures in New York dropped to their lowest level since mid-September on Friday, hit by speculative selling, as the dollar rallied broadly despite surprisingly soft US jobs data for October.
Benchmark December delivery gold fell $4.00, or 0.9 percent, to settle at $457.90 an ounce on the New York Mercantile Exchange's Comex division, its lowest close since September 14.
The key TOCOM gold contract has fallen by about 1.5 percent since hitting a 14-year high of 1,771 yen on October 12. Market participants say it could still reach 1,800 yen this year, although some say TOCOM gold's strength will depend in part on the performance of the New York futures market.
Spot gold was fetching $457.40/$457.90 an ounce at TOCOM's closing bell, compared with $456.20/$457.00 last quoted in New York. Total gold turnover on TOCOM was estimated at a moderate 45,909 lot, down from Friday's 58,742 lots.
The benchmark October platinum futures contract closed down two yen at 3,476 yen per gram, after moving in a range of 3,454 yen to 3,477 yen. Spot platinum was at $926/$930, compared with New York levels of $929/$933 an ounce.