Gold is highly sensitive to rising US interest rates.
London: Gold hit a three-week low on Tuesday as expectations for an interest rate hike by the Federal Reserve this month weighed, but moves were muted as markets awaited US data this week and more pointers on the Trump administration's economic plans.
The precious metal has fallen in five out of the last six sessions as expectations for the US central bank to push ahead with a rate increase this month ramped up.
Spot gold was down 0.2 per cent at $1,223.59 an ounce at 1230 GMT (6:00 pm in India), having earlier touched its lowest since February 15 at $1,222.29 an ounce. US gold futures for April delivery were down $1.90 an ounce at $1,223.60.
The metal slipped last week after comments from Federal Reserve Chair Janet Yellen that the Fed was poised to lift benchmark US rates were seen as cementing plans for an increase at the US central bank's March 14-15 meeting.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar in which it is priced.
"We're now expecting seven rate hikes for 2017/2018, and I think that will put more pressure on gold," Natixis analyst Bernard Dahdah said, adding that the metal is likely to be sensitive to outflows from bullion-backed exchange-traded funds.
Holdings of the world's largest gold ETF, New York-listed SPDR Gold Shares, fell another 3.8 tonnes on Monday, adding to the previous session's 4.7 tonne decline.
On the wider markets, the dollar edged up against a basket of currencies. Comments by Trump administration trade adviser Peter Navarro focussed attention on the White House's attitude to trade and the dollar before G20 meetings this month.
The United States publishes trade balance figures on Tuesday. Investors are also awaiting non-farm payrolls data for February on Friday, seen as a key barometer of the US economy.
China's gold reserves were unchanged for a fourth month in February, the country's central bank said on Tuesday, the longest stretch for which it has not added to its holdings since it started updating the data monthly in mid 2015.
Silver was down 0.6 per cent at $17.67 an ounce.
"Silver ETFs saw outflows of a good 73 tons yesterday - their most pronounced daily outflow in nearly two months," Commerzbank said in a note. "Almost 94 tons of silver have been withdrawn within the last three days of trading."
Platinum was down 0.4 per cent at $971.25, after earlier hitting $965.90, its lowest since January 27, while palladium was 0.1 per cent higher at $771.75.