Gold slipped lower to a five-week low, pressured by US 10-year bond yields and a strong US dollar.
In the Asian session, the yellow metal moved dismally around $1,905 an ounce, while gold futures were little changed at $1,937 an ounce.
The 10-year US treasury yield rose again to its highest level of 4.21% since November last year, while the US dollar, the king of currencies, was at its strongest in a month in early week trading.
The precious metal remained under pressure as US consumer and producer inflation showed modest increases in July.
Goldman Sachs now predicts the Federal Reserve will maintain its monetary policy until the second quarter of 2024 before lowering interest rates.
Meanwhile in the latest move on Tuesday, China's central bank unexpectedly cut its key policy rate for the second time in three months, in a sign authorities are ramping up efforts to support the recovery.
Separately, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to their lowest level since January 2020 on Monday.
