Gold retreated from intraday highs on Tuesday as the dollar moved higher and a voting member of the U.S. Federal Reserve said he is ready to support an interest rate increase in September.
Platinum dropped to the lowest in 6-1/2 years and palladium to the lowest since late-2012 on oversupply and sluggish auto catalyst demand.
Gold prices fell from their highs after Atlanta Federal Reserve President Dennis Lockhart said it would take "significant deterioration" in the U.S. economy for him to not support a rate increase in September, according to the Wall Street Journal.
"The more nervousness created about a September rate hike, the worse it is for gold so that took the market as we go into the close," said Bill O'Neill, co-founder of commodities investment firm LOGIC Advisors in New Jersey.
"What the Fed is trying to do is to gradually prepare the market for a rate hike."
Spot gold was up 0.14 percent at $1,087.30 an ounce, not far above the $1,077 it hit on July 24, the lowest since February 2010.
U.S. gold futures for December delivery settled up 0.1 percent at $1,090.70 an ounce.