The dollar index rose to an 11-month high, supported by reduced expectations of imminent monetary easing following the Federal Reserve's less pessimistic assessment of the US economy.

The most-active US gold futures contract tumbled as much as 2.3 percent to $1,625.3 an ounce, before recovering to $1,633.60 by 0018 GMT.

Spot gold was little changed at $1,629.79, after sliding 2 percent in the previous session.

The US gold contract settled at $1,663.10 on Tuesday, more than $30 higher than the closing price of spot gold.