Gold firmed on Tuesday as a retreat in the dollar index helped the metal snap a four-day losing streak, but bullion remained close to 3-week lows as uncertainty over a looming U.S interest rate hike persisted.
Spot gold was up 0.2 percent at $1,121.10 an ounce, while U.S. gold futures for December delivery settled down 40 cents at $1,121 an ounce.
Spot prices hit their lowest since mid-August on Monday, at $1,116.20 an ounce, after Friday's hotly anticipated U.S. payrolls data failed to provide clarity on the timing of the Federal Reserve's first interest rate rise in nearly a decade.
Expectations for rising rates, which would lift the opportunity cost of holding non-yielding bullion while boosting the dollar, have pushed the metal 5 percent lower this year and remain gold's biggest driver, analysts said.
Trade is expected to be rangebound ahead of the Fed's next policy meeting on Sept. 16-17.