Gold settled below $1,300 an ounce, as the dollar rose and bullion investors focused on a Fed monetary policy report.
The dollar clung to gains after bulls latched onto a comment by the head of the Fed that rates could rise sooner if employment continued to improve.
Brent crude slipped towards $106 a barrel on Tuesday, as worries over Middle East and North Africa tensions eased.
Asian stocks were mostly higher on Tuesday as investors awaited Federal Reserve Chair Janet Yellen's two-day testimony later in the day.
Asian stocks started the week with gains on Monday as fears about Portugal's banking sector receded and as attention turned to corporate earnings.
Stocks climbed on Monday, with the S&P 500 bouncing back from weekly losses, after Citigroup's earnings beat estimates.
U.S. Treasury prices edged lower on expectations that Federal Reserve Chair Janet Yellen could take a less accommodative stance on interest rates.
European shares closed higher, with earnings news from the U.S. and merger and acquisition activity helping bourses post healthy gains.
Gold prices slid more than 2 percent as concerns over the euro zone periphery faded, triggering a rebound in stock markets.
The yen eased on Tuesday after the Bank of Japan's growth warning, but it stopped short of hinting at a new bout of money-printing.
Oil headed for its third weekly loss as worries about supply disruptions in the Middle East and North Africa eased.
Oil prices were little changed as traders weighed turbulence in the Middle East against signs of a market well-supplied with crude.
Stocks declined Thursday, tracking European shares, on worries about one of Portugal's top banks.
U.S. Treasury prices continued to rally on future Fed action and safe-haven demand stemming from worries about Portugal's biggest listed bank.
U.S. stock index futures indicated a higher open, ahead of a bumper week of second-quarter earnings.
U.S. stocks climbed on Friday, but closed lower for the week, as investors weighed Wells Fargo results and readied for a slew earnings ahead.
The yen rose as investors sought shelter from economic stress in Europe.
The dollar was steady as investors awaited pivotal events, including Fed Chair Janet Yellen's congressional testimony, for fresh cues.
The yen was near a five-month peak against the euro as banking woes in Portugal drove equities lower and lifted demand for the safe-haven currency.
Bonds held on to earlier gains on Thursday after the U.S. government's auction of 30-year Treasury bonds, the last of three debt auctions this week.
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