Gold steadied on Tuesday as U.S. stocks bounced, allaying earlier market jitters that had pressured European equities and boosted interest in the precious metal as a haven from risk.
U.S. stocks, which were closed on Monday for the Presidents' Day holiday, opened higher as cautious investors looked for bargains. That depressed interest in gold as an alternative asset, pulling prices from an earlier high of $1,216.80.
Spot gold was at $1,203.90 an ounce, down from $1,209.30 late on Monday, when it shed 2.3 percent, its biggest one-day loss since mid-July.
Gold hit a one-year high of $1,260.60 last week as worries over the global economy prompted heavy selling of cyclical assets, such as stocks and some commodities. However, its rise has been curbed by uncertainty over U.S. monetary policy.