to pare back its quantitative easing if the economy continued to strengthen. "Once September rolls around, gold's upside becomes more suspect and we could be in store for a much more concerted decline as we think that the Fed will indeed deliver its first tapering instalment," INTL FCStone analyst Edward Meir said.
Buying from China was quiet on Tuesday, traders said. Shanghai gold futures fell 1 percent on Tuesday after a three-session rise.
Indian traders said they will start importing gold again over the next week, after the county's central bank clarified a rule that stopped the flow of the precious metal into the top gold consumer at the end of July. Data from the US Mint showed that August sales of American Eagle gold bullion coins stood at just 3,000 ounces as of Monday, far lower that the 39,000 ounces for the whole of August last year and the monthly average of almost 100,000 ounces for the first seven months of this year.