Gold turned lower on Tuesday, after nearing the prior session's 15-month top, as the U.S. dollar moved higher and a Federal Reserve official pointed to the possibility of two interest rate hikes in 2016.
Spot gold was down 0.39 percent at $1,286.01 an ounce, off a session high of $1,302. It reached its strongest level since January 2015 at $1,303.60 an ounce on Monday.
U.S. gold futures for June delivery settled down 0.3 percent at $1,295.80 an ounce, and last traded down 0.59 percent at $1,288.10.
Pressure came from the U.S. dollar against a basket of major currencies, which shifted higher for the first time in seven sessions in a dramatic turnaround from its lowest level in more than 15 months.