Gold touched an eight-week low on Tuesday as safe-haven demand continued to fade in the wake of Emmanuel Macron's victory in the French election and as expectations for tighter U.S. monetary policy lifted bond yields.
Revived appetite for riskier assets has pushed global stocks to record highs, while the market's so-called fear gauge, the VIX volatility index, fell to its lowest since 1993.
Rising stocks and higher bond yields raise the opportunity cost of holding non-yielding bullion, while a stronger dollar makes gold more expensive for holders of other currencies.
Spot gold was fell 0.77 percent to $1,216.35 an ounce. The metal dipped below its 100-day moving average, a key technical support level currently at $1,224.
U.S. gold futures for June delivery dropped $11.00 to settle at $1,216.10 an ounce.
"With one of the largest political risk events now cleared, some consolidation is warranted, albeit political uncertainty lingers in Italy and is likely to remain for some time," UBS analyst Joni Teves said.