Gold prices fell 1 percent to a three-week low on Monday, pressured by rising US stocks and an agreement that averted a US government shutdown, dampening demand for non-interest paying bullion. US stocks were lifted by Apple shares hitting a record high and a gauge of key world equity indexes also strengthened, while Treasury yields rose.

"Risk appetite isn't collapsing here," said Bart Melek, head of commodity strategy for TD Securities in Toronto. "Gold has been a little bit overdone here. It looks like we're just trying to trend to the 200-day moving average." Spot gold was down 0.8 percent at $1,257.58 an ounce by 3:16 pm EDT (1916 GMT), after dropping to $1,253.66, the lowest since April 11 and just above the 200-day moving average at $1,251.93.

US gold futures settled down 1 percent at $1,255.50. Gold briefly moved higher after US construction spending unexpectedly fell in March from a record high, government data showed, while the Institute for Supply Management (ISM) manufacturing employment index came in at the lowest since October.

Spot silver dropped 1.9 percent to $16.87 an ounce, after falling to $16.78, matching the May 10 session low. Platinum fell 1.7 percent to $927.25 an ounce, after falling to a four-month low at $923. Palladium was down 1.1 percent at $814.50 an ounce.

Copyright Reuters, 2017