Gold prices fell on Tuesday to their lowest in more than two weeks as fears of a wider conflict in the Middle East eased, boosting investors' appetite for risk and reducing demand for the metal as a safe haven.
Spot gold fell about 1 percent to $2,304.99 an ounce by 0336 GMT. U.S. gold futures fell 1.2 percent to $2,318.80 an ounce.
Gold fell more than 2 percent in the previous session, its biggest intraday drop in more than a year, after Iran said it had no plans to retaliate following an apparent Israeli drone attack.
Policymakers, including Federal Reserve Chairman Jerome Powell, last week backed away from providing any guidance on when interest rates might be cut, saying instead that monetary policy should be restrictive for longer.
Higher interest rates make it less attractive to hold non-yielding gold.
Markets are also awaiting the release of March personal consumption expenditures data this week, the Fed's preferred measure of inflation, for further clues about the path of monetary policy.
Among other precious metals, spot silver rose 0.4 percent to $27.31 an ounce, platinum rose 0.2 percent to $919.05, and palladium fell 0.1 percent to $1,007.58.
