Gold and Silver settled lower in futures market on Monday as the U.S. dollar strengthened a bit after last week's sharp loss.

''Gold is taking a breather after a big run up the last few days,'' said Colin Cieszynski, chief market strategist at CMC Markets. Prices for the metal had logged gains in each of the last six sessions in a row.

''The U.S. Dollar is stabilizing as well and in the absence of major news,'' Cieszynski said. Gold and the greenback ''may both be going into a holding pattern ahead'' ahead of a monetary policy statement from the U.S. Federal Open Market Committee due Wednesday.

Gold futures fell 0.60 dollar or 0.05 percent to close at USD 1,254.30 per troy ounce at the COMEX division of the New York Mercantile Exchange.

Silver futures fell 0.014 dollar or 0.09 percent to close at USD 16.41 per troy ounce at the COMEX.