Gold prices steadied near 18-month lows on Tuesday, attempting a break back above the key $1,200 level as the dollar eased and analysts said the precious metal could have fallen too far.
Spot gold was up 0.01 percent to $1,193.41 an ounce. In the previous session, the bullion hit $1,191.35, its lowest since Jan. 30, 2017.
U.S. gold futures settled up $1.80 an ounce at $1,200.70.
The dollar, in which commodities such as gold are priced, edged lower against a basket of its peers as the Turkish lira regained its footing, easing concerns of a negative ripple effect on global markets.
"A lot of investors got very disappointed because they thought that gold would be the safe haven in trade conflict and also with Turkey and emerging markets and it wasn't," said Georgette Boelle, commodity strategist at ABN AMRO.
"It's still very difficult to point out where the low is going to be but we are in cheap territory and gold should start bottoming out at these levels."
Gold, which is down about 8 percent this year, has faced a slate of headwinds in 2018 including rising U.S. interest rates, a soaring dollar and failure to capitalise on its traditional role as a hedge against risk amid global uncertainty.
Instead, investors have opted for U.S. Treasuries, seen as the ultimate safe haven, which meant they had to buy dollars.
The bearish stance on gold continued to reflect in record short positions and in the outflow of gold exchange traded products.