Gold steadied after three days of losses on Tuesday but remained under pressure as the dollar was well bid on expectations the Federal Reserve could still raise US rates this year.
Spot gold was little changed at $1,170.06 an ounce by 0029 GMT, after losing about 1.2 percent in the past three sessions.
The dollar climbed to its highest in over a week on Monday against a basket of major currencies, weighing on gold. A stronger greenback makes gold expensive for holders of other currencies.
Gold touched its highest level in 3-1/2 months last week on bets the Fed will not raise US rates amid concerns about the global economy. But the rally lost steam after robust US economic data, and as gold failed to surge past the key $1,200 level.
Despite strong headwinds from overseas that are holding down US inflation, the Fed should soon begin to raise interest rates to slow down economic growth before it becomes unsustainable, San Francisco Fed President John Williams said on Monday.
Investors worldwide have expressed frustration over the mixed messages from the US central bank in recent weeks. Fed Chair Janet Yellen and other officials have said they expect a rate hike will be needed by the end of this year, but two Fed governors last week urged caution. The Fed has kept interest rates near zero for nearly seven years.
The Fed holds two more policy meets this year: next week and in December. Market expectations for a rate hike have shifted to next year in recent weeks.
Elsewhere, assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, rose 0.51 percent to 697.32 tonnes on Monday.
New liquidity rules for banks in the European Union could raise costs for those trading gold by up to 300 percent, forcing them to withdraw from the market, the head of the London Bullion Association said.