Gold fell on Tuesday to its lowest in more than three months on increased appetite for riskier assets as investors awaited a speech by US President Donald Trump for cues on a trade deal with China.
Spot gold slipped 0.6% to $1,447.31 per ounce as of 10:41 a.m. EST (1541 GMT), having touched its lowest since Aug. 5 earlier.
US gold futures dropped 0.7%, to $1,447.60 per ounce.
"The problem for gold right now is (Treasury) yields have risen, the probability that the Federal Reserve will tighten (monetary policy) has dropped and the equities market has returned very well," said Bart Melek, head of commodity strategies at TD Securities.
Any reduction in aggressive behaviour on the trade front would drive investors away from bullion, he said.
World shares and benchmark government bond yields inched higher as investors awaited a speech by Trump on US trade policy.
"There is guarded optimism (in the market) and we are tilting to the idea that there'll be some deal done, may be not as comprehensive as both the side were arguing," Melek added.
Trump's impending address at the Economic Club of New York will be closely watched for any reassurances on the Sino-US trade agreement and for any delay in a decision on European car tariffs. "The precious metals bulls are trying to stabilize their markets after recent strong selling pressure has driven prices to three-month lows," Kitco Metals senior analyst Jim Wyckoff said in a note.
Bullion fell 3.6% in the previous week and extended declines into a fourth straight session on Tuesday.
Also on investors' radar was continuing unrest in Hong Kong, with a senior officer saying the unrest had brought the city to "the brink of total breakdown."
Gold, considered a safe store of value during economic and political uncertainties, has risen nearly 13% so far this year on concerns regarding the US-China trade resolution and monetary policy easing by global central banks.
Among other precious metal, palladium gained 0.4% to $1,693.83 per ounce, having touched a one-month low in the previous session. Silver dropped 1.1% to $16.67 an ounce, and platinum fell 1% to $867.20, after touching its lowest since Aug. 28 earlier in the session.
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