Gold pared earlier gains to edge lower on Tuesday as a higher dollar and Treasury yields pressured the metal, while investors awaited the outcome of US midterm elections for fiscal policy clues.
Spot gold slipped 0.5% to $3,927.18 per ounce by 2:06 p.m. ET (1906 GMT). An earlier 1% decline took gold prices to a session low of $3,893.31. A decline in oil prices had eased some inflationary concerns and allowed bullion a short gaining spell, before prices fell again.
US gold futures for December delivery settled 0.7% lower at $3,940.40 per ounce.
Oil prices fell to a three-week low as the market weighed talks to end the wars in Ukraine and Iran against worries about additional supply disruptions from recent attacks in both conflicts.
"The dollar has been strengthening, and yields are going higher," pressuring gold, said Phillip Streible, chief market strategist at Blue Line Futures.