Gold prices dropped on Tuesday as investors shifted their attention to more riskier assets such as the U.S. dollar on expectations China and the United States may be on course to reach a trade agreement. The greenback recovered from a 2-1/2-month trough touched in the previous session.
Spot gold slumped 0.6 percent to $1,281.32, while U.S. gold futures slipped 0.5 percent to $1,283.10 an ounce.
Prices of the bullion have jumped almost 11 percent since scaling a more than 1-1/2-year weak point in mid-August because of volatile stock markets and a broadly weaker buck. The yellow metal prices breached their top since June 2018 at $1,298.42 on Friday.
Silver dipped nearly 0.9 percent to $15.51 per ounce, while platinum inched down 0.7 percent to $816.50, having scaled its highest level in more than a month at $831.10 the day before.
The dollar index crept up almost 0.3 percent, bouncing back from a 2-1/2-month trough hit on Monday after U.S. Federal Reserve head Jerome Powell hinted on Friday that the regulator could slow its pace of rate hikes.