Easing inflationary fears in the face of dropping oil prices also weighed on US dollar-denominated gold, a convenient hedge against inflation.
Spot gold was priced at $457.00/$457.75 an ounce in Asian trade versus $459.10 in late New York and Asian trading. Bullion dealers in London last fixed the afternoon spot reference price at $456.50.
Gold is now 5 percent below its mid-October high of $480.25. Light volume trading was roping gold into a narrow price band, further favouring the downside ahead of more active European trading, according to bullion dealers.
"The dollar holds the key to the gold price," one said. Initial expectations among some currency traders that the dollar's advance against the single European currency was slowing in the face of little influential economic data on the horizon evaporated as the euro was set in retreat.
A cheaper dollar often encourages gold buying in foreign currencies, while a stronger greenback can prompt sales for quick profits.
The euro dropped as low as $1.1751 on electronic trading platform EBS, it's lowest since November 2003.
Meanwhile, oil futures slipped further on Tuesday after losing more than $1 a barrel in the previous session as unseasonably warm weather in the US Northeast continued to pressure prices.
Analysts also predicted rising supplies of US crude and heating oil, with refining and drilling operations recovering from hurricane damage.
Silver was 3 cents down at $7.53/$7.56 an ounce.
Platinum gained $1 to $928/$933 an ounce, while palladium added $1 to $225/$229 an ounce.