Gold edged lower on Tuesday as the dollar recovered and global shares rose, but uncertainty about the timing of a U.S. interest rate increase kept bullion not far from a seven-week high above $1,200 an ounce.
Bullion rose to its highest since Feb. 17 on Monday, supported by a weakening dollar after U.S. non-farm payrolls data fuelled expectations that the Federal Reserve could delay an anticipated rate increase this year.
``Bulls are frustrated yet again to see rallies fade ...momentum buying is mostly seen as an opportunity to sell into,'' bullion broker Sharps Pixley Chief Executive Ross Norman said.
Spot gold was down 0.4 percent at $1,210 an ounce, while U.S. gold for June delivery slipped 0.7 percent to settle at $1,210.60 an ounce
The dollar rose 0.8 percent versus a basket of major currencies, aided by higher Treasury yields, while European shares also climbed, denting gold's appeal as an insurance against risk.
A stronger greenback makes dollar-denominated bullion more expensive for holders of other currencies, while returns on U.S. bonds are closely watched by the gold market, given that the metal pays no interest.