Gold prices fell on Tuesday as U.S. stock markets stabilized, easing fears of a deeper selloff, and the dollar strengthened, making bullion more expensive for users of other currencies.
Gold had surged on Monday as falling U.S. share prices and fears of a global trade war pushed investors towards safer assets. But while European stock markets continued to fall, led by technology shares, Wall Street rebounded.
Spot gold dropped 0.6 percent to $1,333.09 per ounce at 2:21 p.m. EST. U.S. gold futures for June delivery settled down $9.60, or 0.7 percent, at $1,337.30 per ounce.
"Gold has given back some of its sharp gains from yesterday. As well as a slightly positive tone in the stock markets, the dollar has rebounded against both the euro and the yen," said Forex.com market analyst Fawad Razaqzada.
"The potential for a dollar rally is there this week, with Fridays jobs report being the key event risk. Should the greenback regain its poise then gold could come under further pressure."