Spot gold was 0.2-per cent higher at $ 1,300.20 per ounce at 0057 GMT.
US gold futures for June delivery fell 0.3 per cent to $ 1,300 per ounce.
The dollar index , which measures the greenback against a basket of six major currencies, stood at 94.376 after hitting a peak of 94.496 on Monday, its highest since Nov. 14, 2017.
The euro struggled near a 6.5-month low against the dollar on Tuesday, the bounce seen at the start of the week fading out as investors took a grim view of Italy seemingly heading towards another election.
Italy’s president set the country on a path to fresh elections on Monday, appointing a former International Monetary Fund official as interim prime minister with the task of planning for snap polls and passing the next budget.
South Korean President Moon Jae-in said on Monday there could be more impromptu talks and summits with North Korea’s Kim Jong Un, as US officials sought to revive what would be a historic meeting between US President Donald Trump and Kim.
Trump and Japanese Prime Minister Shinzo Abe discussed North Korea by phone on Monday and confirmed they would meet before an expected US-North Korea summit, the White House said.
Chinese and US envoys sparred at the World Trade Organization on Monday over Trump’s claims that China steals American ideas, the subject of two lawsuits and a White House plan to slap huge punitive tariffs on Chinese goods.
China’s net gold imports via main conduit Hong Kong fell 35.3 per cent in April from the previous month as demand for bullion weakened, data showed on Monday.
Pan American Silver Corp became the latest company to curtail operations in Mexico due to rising violence and crime, saying on Monday it has faced security incidents along the roads used to transport personnel and materials to its Dolores mine.