Gold extends fall as dollar gains, trade tensions ease
Spot gold was down 1.3% at $3,274.10 an ounce, as of 1017 GMT. However, bullion was on track to log its fourth consecutive monthly gain, up nearly 5% so far in April.
U.S. gold futures slipped 1.5% to $3,283.50.
"The market is currently experiencing high volatility as the two-way flows compete. In short, it looks as if gold may be entering a well-earned period of consolidation," said Ross Norman, an independent analyst.
The dollar index rose 0.2% against its rivals, making bullion more expensive for other currency holders.
"Gold prices are lower in more stable conditions as the market took stock of what appeared to be a de-escalation of the U.S.-led trade war that has rattled the financial markets in recent weeks," Frank Watson, market analyst at Kinesis Money, said in a note.
"That said, gold's reluctance to move much lower can be taken as a sign that the financial markets are still on edge amid uncertainty over U.S. trade policies and their ultimate impact on the wider global economy."
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday, while his trade team touted its first deal with a foreign trading partner.
Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 per ounce on April 22 as investors sought refuge from global economic turmoil.
Investors will turn their focus to a series of U.S. economic data, including U.S. personal consumption expenditures (PCE) later in the day and the non-farm payrolls report on Friday, that could shed more light on the Federal Reserve's interest rate outlook.
Elsewhere, spot silver dipped 2.1% to $32.27 an ounce, platinum fell 1.1% to $966.86 and palladium lost 0.6% to $929.44.
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