Gold eased on Tuesday after a two-day rally, shrugging off the weak dollar and rebound in oil prices as dealers squared their books ahead of year-end amid typically light trade leading up to the Christmas holiday.
The metal is up 2.5 percent from last week's trough, which was near the lowest level since early 2010, reached after the Federal Reserve announced its first rate rise in nearly a decade, raising uncertainty over the pace of further increases.
"Most of the things today would've made you think the gold market would be stable or going up. It's behaving in a contrary, slightly erratic fashion," said James Steel, chief metals analyst for HSBC Securities, noting that pre-holiday trade is typically erratic at this time of year. "I think it's just book squaring."