Gold edged lower on Tuesday after U.S. equities hit all-time highs on market expectations for higher growth and more spending from a Donald Trump presidency.
Trump's victory in the Nov. 8 U.S. election initially saw a flight to safe-haven assets such as gold but the trend reversed as the dollar and bond yields surged on expectations of higher U.S. spending and interest rates.
Spot gold was down 0.24 percent at $1,210.72 an ounce by 3:00 p.m. EDT. In the previous session, the metal rose 0.4 percent, reversing three sessions of losses.
U.S. gold futures for December settled at $1,211.90.
"We see this as a short-covering rally rather than a fundamental change," said ING's head of commodities strategy Hamza Khan, adding that a rise in equities and the dollar were signs of sustained pressure on gold in the medium term.
Recent gold lows had spurred physical buying by bargain hunters, Khan said, but this could establish a floor for bullion rather than push it higher.
"Right now we are just not sure where that floor is," he said.