Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $19.20, or 1.58%, to $1,199.80 a troy ounce.

A wave selling hit the lira, triggering concerns about an emerging market crises, but investors have continued to shun gold as a safe-haven destination on concerns further increases in U.S. interest rates would boost the dollar, reducing gold demand.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.03% to 96.22. And there is more room for further upside, according to Oppenheimer.