Gold steadied after setting a one-month high on Monday as rising political uncertainty in Europe stoked safe haven demand.
The metal, often seen as an alternative investment during times of geopolitical and financial uncertainty, benefited with the Japanese yen and U.S. Treasuries from a risk-averse mood in global markets.
Spot gold touched a one-month high of $1,270.47 before pulling back 0.27 percent to $1,262.91 per ounce. U.S. gold futures slipped $5.70 to settle at $1,265.70 an ounce as the dollar picked up.
Investors were concerned about next week's election in Britain, as well as the prospect of early elections in Italy and worries over Greek debt, which analysts said supported gold and dented stocks.
A poll in Britain on Tuesday showed Prime Minister Theresa May's lead over the opposition Labour Party dropping to 6 percentage points ahead of the general election next week.