Spot gold was up 0.3 percent at $1,204.22 per ounce at 0339 GMT, having touched its lowest since Oct. 11 at $1,199.72 earlier in the session.
U.S. gold futures inched up 0.1 percent to $1,204.7 per ounce.
• "It's been some time that we have seen this level, so we are seeing some buying here," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
"However, a stronger dollar has capped the market."
• The dollar index, which measures the greenback against a basket of six major currencies, was sitting just shy of its 16-month high of 97.69 hit on Monday, benefiting from save-haven flows as investors shunned riskier assets because of political uncertainties in Europe, fears of a global economic slowdown and U.S.-Sino trade tensions.
A firmer greenback makes bullion expensive for holders of other currencies as the commodity is priced in dollars.
• Gold, usually viewed as a safe store of value during political and economic uncertainty, has fallen over 12 percent from its April peak as investors largely turned to the dollar as the U.S.-China trade war unfolded against a background of higher U.S. interest rates.
• Spot gold may bounce moderately to $1,211 per ounce before breaking a support at $1,202 and falling more to $1,192, said Reuters technical analyst Wang Tao.
Meanwhile, Asian shares skidded on Tuesday after a rout in tech stocks pulled down Wall Street.
• Gold will remain an important portfolio diversifier amid rising volatility, ANZ analysts said in a note.
"We see the recovering ETF holdings and the risk-off tone of the equity market boding well for gold prices."
• Holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.90 percent to 762.00 tonnes on Monday.
• Among other precious metals, silver was up nearly 1 percent at $14.09 per ounce, having touched a more-than-two-month low of $13.95 earlier in the session.
Palladium climbed 1.16 percent to $1,108.20 per ounce.
Platinum rose 0.6 percent to $845.80 an ounce.
Reference: Reuters
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