By Sumit Saha
Gold slipped for a second consecutive session on Tuesday as a stronger U.S. dollar weighed, while investors awaited Federal Reserve meeting minutes and monitored tensions in the Gulf.
Spot gold TVC:GOLD fell 0.8% to $4,129.36 per ounce at 0918 GMT. Prices rose more than 2% last week, ending a four-week losing streak following a weak U.S. jobs report.
U.S. gold futures TVC:GOLD for August delivery eased 0.6% to $4,140.90.
The dollar rose 0.1% against a basket of currencies, making dollar-denominated gold costlier for overseas buyers.
"Today's price action appears to be more of a consolidation than a significant reversal of last week's positive sentiment, with traders waiting for the release of the latest FOMC minutes on Wednesday before making more decisive moves," said ActivTrades analyst Ricardo Evangelista.
Traders will focus on the Fed's views regarding inflation, labour market conditions and any potential divergence of opinion from within the body, added Evangelista.
Investors now see about a 58% chance of a U.S. rate increase in September, according to the CME FedWatch tool.
Geopolitical tensions remained in focus as Trump renewed threats of military action against Iran, while Iran's foreign minister said negotiations on a final peace deal will not continue unless Washington abandons its threats.
Crude prices edged higher on traders' nervousness about a lack of progress on peace talks.
Higher energy prices fuelled inflation concerns, bolstering expectations of higher-for-longer U.S. interest rates and weighing on non-yielding gold.
Meanwhile, China's central bank maintained gold purchases for a 20th straight month, with its reserves hitting 75.44 million fine troy ounces at the end of June, up from 74.96 million a month earlier.
Hong Kong launched a central clearing system for gold on Tuesday and also revived dollar gold futures trading.
Spot silver BIST:XAGUSD1! slipped 1.9% to $60.93 per ounce, platinum NYMEX:PL1! eased 0.1% to $1,630.23, and palladium BIST:XPDUSD1! rose 0.2% to $1,270.63.