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Gold was little changed on Monday as a sell-off in equities increased the safe-haven appeal of the yellow metal, with expectations of a rate hike this month by the U.S. Federal Reserve keeping gains in check.

Spot gold held steady at $1,329.60 an ounce at 0653 GMT. U.S. gold futures edged 0.1 percent lower at $1,328.30 an ounce.

A chorus of hawkish comments from Fed officials kept hopes alive for a September rate hike despite a recent spate of disappointing economic data, including only a modest rise in U.S. nonfarm payrolls.

"A pick-up in focus on the Fed speakers certainly means that every word will be closely analysed. It is going to create a little bit of volatility going forward," ANZ analyst Daniel Hynes said. "Expectations are increasing about a potential hike in rates this September. That alone will see investors reduce their long positions over the coming days."

"We expect gold to continue to be under modest pressure, especially if expectations about a September Fed rate move continue to become more firmly entrenched," INTL FCStone analyst Edward Meir said in a note.

The investment of choice among gold investors appears to be gold-backed exchange-traded products and according to analysts from Societe Generale this market has considerable impact on the overall market. The French bank says, in a recent report that for every 10% rise or fall in EFP holdings the gold price can rally or drop by 3%, or about $41 per ounce. "ETF flows are incredibly volatile when compared with other [gold-market] fundamentals,” the analysts says. The analysts also note that if ETF holdings fall back to January 2016 levels the price could drop by 13% to $1,168 an ounce, “only $102 off" the metal's 6-year lows of the previous month.”

Reference: KITCO, Reuters