Gold fell on Tuesday as safe-haven demand ebbed after Cyprus clinched a last-ditch rescue deal, and U.S. data showing continued gradual improvement in the economy also weighed.
While Cyprus's deal to shut down the country's second largest bank in return for 10 billion euros ($13 billion) in rescue funds removed the immediate risk of a financial meltdown, the European Central Bank worked to allay anxiety that this could have negative implications for other euro zone states.
(Read More: Gold Eases Below $1,600; Cyprus Effect Fades)