The most active gold contract for February delivery lost 6.00 U.S. dollars, or 0.39 percent, to settle at 1,544.60 dollars per ounce.
As tensions between the United States and Iran eased and the phase one U.S.-China trade agreement is expected to be signed this week, the demand for safe-haven gold is dulled.
"The marketplace this week is focused on the U.S.-China partial trade agreement," wrote Jim Wyckoff, senior analyst with Kitco.com. "The trade deal is expected to boost global economic growth in 2020."
The Dow Jones Industrial Average firmed on Tuesday, once surpassed 29,000 points during the session, hitting a new all-time high.
When equities post gains, the precious metal usually falls, as investors are not necessarily looking for a safe haven, such as gold.
As for other precious metals, March silver lost 25.4 cents, or 1.41 percent, to close at 17.742 dollars per ounce. April platinum rose 5.2 dollars, or 0.53 percent, to settle at 987.30 dollars per ounce.
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