Gold slipped to a one-week low after being pushed lower by the US dollar and stronger US 10-year bond yields.
In the Asian session, the yellow metal traded at $1,925 per ounce, while gold futures were slightly lower at $1,950 per ounce.
The hold on the yellow metal was eased as the US dollar resumed its strengthening on Tuesday after a slow move on Monday following the Labor Day holiday,
Also adding to the pressure for gold trading was the rebound in US 10-year bond yields to a one-week high of 4.26%.
The expectation that the Federal Reserve (Fed) will maintain high interest rates for longer is seen to support the US dollar and affect gold prices.
Fed Governor Christopher Waller said that there is currently nothing to force a move towards raising short-term borrowing costs again.
However, recent data shows that inflation rates remain stable and indicate a very resilient economy, thus allowing the Fed to maintain a tight policy in the near term.
