Gold prices started the week on the back foot on Monday, sliding to their lowest level since the end of August, as investors looked ahead to a Federal Reserve policy meeting for insights into the outlook for monetary policy.

Comex gold futures were at $1,320.02 a troy ounce by 3:40AM ET (0740GMT), down $5.30, or around 0.4%. It fell to its lowest since Aug. 31 at $1,318.48 earlier in the session.

The yellow metal lost nearly 2% last week, its first weekly decline in a month, as investor interest in riskier assets, such as stocks, found buying interest.

A key focus for markets this week is the Federal Reserve's two-day policy meeting that ends on Wednesday.

The Fed is widely expected to keep interest rates unchanged this week, but is likely to announce a plan to start shrinking its massive $4.5 trillion balance sheet in an effort to normalize policy.

Markets will also be looking for further clues on the timing of the next Fed rate hike, with around 60% of market players expecting a move by December, according to Investing.com's Fed Rate Monitor Tool.

Besides the Fed, developments on the Korean Peninsula are likely to continue attracting attention.

U.S. President Donald Trump referred to North Korean leader Kim Jong-Un as "Rocket Man" in a tweet on Sunday as other U.S. officials continued to reiterate that "all options" were on the table in dealing with the hermit state.

Trump is expected to address world leaders at the United Nations on Tuesday, where he is expected to seek support for tougher measures against Pyongyang.