Gold slipped more than 2.50% in Monday's trading as the US dollar hit a four-month high.
The expectation of Donald Trump's administration for the second time could trigger an increase in the trade war which could provide a high strengthening for the USD.
At 11.00 am, the price of gold was at $2,622.66 which is steady since it opened in early Asian trading on Tuesday.
The traditional metal has been performing well for more than a month as markets await the Fed's policy easing and the US election.
The US Dollar Index (DXY) which tracked the best performance compared to other major currency groups increased by 0.60% to 105.57 points.
Meanwhile, financial firms Blackrock and JPMorgan warned that a fall in US bond sales could be triggered by Donald Trump's fiscal plans that could raise inflation and the budget deficit again.
At the December meeting, the Federal Reserve (Fed) is expected to lower rates by 25 basis points with a market probability as high as 80% compared to the previous only 65%.
According to the President of the Minneapolis Fed, Neel Kashkari said they have confidence that inflation will come down fully to 2% and economic growth will remain strong.
Throughout the week, there were several US economic data that influenced the direction of gold, especially the release of important data on consumer inflation and retail sales.
