The precious metal hit a low of $1222.70 an ounce, while currently trading around $1223.26 from the opening at $1226.66.
Currently, gold is on track for its biggest monthly decline since November as recent comments from Fed officials supported the case the Fed would raise rates as soon as convenient.
A report released on Tuesday signaled U.S. new home sales climbed at the fastest pace in more than eight years in April.
Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.
Eyes will focus on a speech by Fed Chair Janet Yellen speaks at Harvard University on Friday, as investors aim to get further clues whether the Fed would hike interest rates in June.
The dollar traded near two-month high, according to the dollar index, thereby denting the appeal of the metal as an alternative investment.
Meanwhile, the dollar index, which tracks the green currency’s movements against a basket of major currencies, is trading around 95.60.
The U.S. will release its goods trade balance and flash services PMI data later in the day, where investors will continue to track U.S. economic data.
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