Gold fell over 1% on Tuesday as major economies further eased coronavirus-linked restrictions, fuelling hopes for economic recovery and bolstering risk appetite.
Spot gold slipped 1.1% to $1,710.95 per ounce by 1:41 p.m. EDT (1741 GMT), having earlier hit a low since May 13 at $1,708.47.
US gold futures settled down 1.7% at $1,705.60.
"There is a risk-on tone in the market, driving the reversal of (gold's) safe-haven flows," said Daniel Ghali, commodity strategist at TD Securities.
"A breakdown below $1,700 could crack open the doors towards $1,680 (for gold)," said FXTM analyst Lukman Otunuga.
"Nevertheless, the downside is likely to be cushioned by trade woes, disappointing economic data and growth fears."
Gold, a safe store of value during political and financial uncertainty, climbed to its highest since October 2012 last week, driven by monetary and fiscal stimulus, recession fears and US-China tensions.
"Investment demand will continue to strengthen as the US Federal Reserve's stimulus will remain in place for quite a substantive amount of time," TD Securities' Ghali added.
Elsewhere, palladium dropped 1.3% to $1,966.43 per ounce, platinum fell 1.2% to $828.45, while silver dipped 0.5% to $17.12. Mining output in South Africa, the world's biggest producer of platinum and a leading producer of gold, could fall by 8%-10% this year due to the pandemic, according to Roger Baxter, CEO of industry body the Minerals Council.
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