Spot gold fell 0.1 per cent to $ 1,352.40 per ounce at 0111 GMT.
US gold futures for April delivery fell 0.2 per cent to $ 1,352.20 per ounce.
Asian share markets rose on Tuesday as optimism set in amid reports that Chinese and US officials were busy negotiating to avert a trade war. Against a basket of six other major currencies, the dollar index was up 0.1 per cent at 89.07.
Premier Li Keqiang said on Monday that China and the US should maintain negotiations and he reiterated pledges to ease access for American businesses.
Top Trump administration officials are asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more US-made semiconductors in negotiations to avoid plans to slap tariffs on a host of Chinese goods.
The United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.
China called on World Trade Organization members on Monday to unite to prevent the United States “wrecking” the WTO, and it urged them to oppose US President Donald Trump’s tariffs targeting China’s alleged theft of intellectual property.
The Federal Reserve should continue raising interest rates this year and next so that it can avoid an overheating that cuts short the economic expansion that is already picking up steam, a policymaker of the US central bank said on Monday.
International Monetary Fund (IMF) head Christine Lagarde said on Monday euro zone leaders should set up a “rainy day fund” to help cushion member states in economic downturns.
SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.38 per cent to 847.30 tonnes on Monday from 850.54 tonnes on Friday.
Newcrest Mining , Australia’s largest independent gold miner, said on Tuesday it will recommence mining operations at its flagship Cadia mine which was closed following damage to a tailings dam wall.