Gold prices eased as the dollar recovered from seven-week lows on Tuesday, sliding after the yellow metal hit two-month highs earlier in the session amid signs that US President Donald Trump would adopt a protectionist stance on trade.
Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday and told US manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas.
Spot gold slid 0.3 percent to $1,214.2 per ounce by 0649 GMT, after hitting its strongest since November 22 at $1,219.59 earlier in the session. US gold futures remained steady at $1,214.20.
"For the time being, we suspect that gold will likely push higher, as improving chart patterns, unease about Trump's policies, growing perceptions that the Fed will be relatively quiet for a while and pressure on the dollar, all provide an element of support," INTL FCStone analyst Edward Meir said.