Gold was steady on Tuesday as the resilience of the dollar versus the euro reduced investor appetite for the metal, while a rise in the yen dragged down yen-based gold futures in Tokyo.
Spot gold was at $649.90/650.50 an ounce as of 0640 GMT, compared with $650.80/651.40 late in New York on Monday, when it dropped nearly $3, amid a lack of physical buying ahead of a series of economic data.
The euro was at $1.3455, down slightly on the day and extending its retreat from a two-week high of around $1.3470 marked last week.
Spot gold has been undermined by the euro's failed attempt to near $1.35, said Kaname Gokon, deputy general manager at Okato Shoji Co. Ltd.'s research section.
A reversal in the yen's recent fall triggered profit taking in precious metals futures on the Tokyo Commodity Exchange.
A weakening yen in the past week had encouraged local investors to buy TOCOM's yen-based futures, in particular platinum futures, traders said.
Key gold futures contract for April 2008 delivery on TOCOM finished at the day's low of 2,602 yen a gram, down 1 percent or 25 yen from the previous close.
It was the lowest level for any benchmark since June 15.
The nearby June contract expired at 2,586 yen, down 17 yen from the previous close. The June contract was listed at 2,200 yen a year ago.
The yen jumped on Tuesday after Japan's finance minister warned that markets should be aware of the risks of one-way bets, reflecting concerns about the pace of the yen's slide.
The popularity of carry trades -- borrowing funds in low-yielding currencies such as the yen to buy higher-yielding assets -- has been a driver in the yen's broad slide against other currencies.
The dollar traded at 123.30 yen, down from a 4-1/2-year high of 124.14 yen reached last week.
Market players were awaiting a series of U.S. data, including new home sales and consumer confidence reports due on Tuesday.
Also, the U.S. Federal Reserve's policy meeting this week is awaited for clues on the central bank's thinking on the economy's health. The Fed ends a two-day meeting on Thursday.
Upbeat views on the world's biggest economy could boost the dollar and undermine gold.
Cash platinum edged up to $1,283/1,287 an ounce from $1,280/1,284 an ounce late in New York on Monday, when it fell more than $15.
Benchmark April platinum futures fell 77 yen a gram, or 1.5 percent, to 5,033 yen. On Monday, the contract reached a record high for any benchmark of 5,117 yen due partly to supply concerns stemming from a labor dispute in South Africa.
The nearby June contract expired at 5,072 yen, down 87 yen from the previous close but at the highest-ever price at which platinum is delivered on TOCOM. The June contract hit its life high of 5,161 yen on Monday, 18 percent higher than its listed price of 4,375 yen.
The rally in the white metal has run out of steam for now, but expectations that auto makers may begin replenishing stocks as the second quarter rolls on continue to underpin the downside.
Spot silver was at $12.81/12.85 an ounce versus $12.845/12.875 late in New York on Monday, when it fell to its lowest in nearly two weeks at $12.80.
There are expectations that tightening supply may support the price of the industrial metal as China is set to lower tax rebates on exports of silver to 5 percent from 13 percent from July 1.
Spot palladium stood at $367/371 an ounce, little changed from $367.50/371.50 in late New York.
(Additional reporting by Lewa Pardomuan)