Gold slipped on Tuesday from the previous day's four-month high, reflecting losses across the commodities complex as the U.S. dollar clawed back some losses the day after hitting a three-year low against a basket of currencies.
Gold's move lower came after four consecutive days of gains due to the greenback's retreat, which made dollar-priced gold cheaper for holders of other currencies.
"The gold market has gained a lot of momentum over the last few sessions to the upside, so its understandable that its taking a breather on profit-taking, said Phillip Streible, senior commodities strategist at RJO Futures in Chicago.
In early trading, the dollar rose against the euro. On Monday the dollar hit its lowest against the single currency since late 2014. The greenback has weakened as markets have grown more confident that a global recovery would outpace U.S. growth.
Stock market strength also weighed on gold, said George Gero, managing director of RBC Wealth Management. Gero added that broad commodity weakness also weighed on gold prices. U.S. wheat futures fell as did crude oil and copper, while nickel slid more than 5 percent.