Gold eased under pressure from the dollar on Tuesday, with investors booking profits after rising tensions between North Korea and the United States pushed the metal to a one-week high.
Spot gold was down 0.96 percent to $1,297.57 per ounce, after earlier marking its highest since Sept. 20 at $1,313.54. It gained more than 1 percent the previous session.
U.S. gold futures settled down at $1,301.70 an ounce.
"Geopolitics haven't come off the table. They are still front and center but after a rally you tend to get a tiny bit of a pullback," said ETF Securities commodity strategist Nitesh Shah.
North Korea appears to have boosted defenses on its east coast, South Korea's Yonhap news agency reported, after the North said U.S. President Donald Trump had declared war and that it would shoot down U.S. bombers flying near the peninsula.
Bullion is used as an alternative investment during times of political and financial uncertainty, generally gaining along with U.S. Treasuries and the Japanese yen.
The U.S. dollar index gained 0.5 percent against a basket of currencies, making commodities including gold more expensive for holders of other currencies.