Gold fell on Tuesday as softening trade tensions between the U.S. and its trading partners dulled the metal's safe-haven appeal, while investors awaited U.S. economic data to assess the Federal Reserve's policy path.

Gold fell further from last week’s record high as easing trade tensions instill new risk appetite into global markets.

Gold retreated sharply from an all-time high in the past week as risk-aversion sentiment abated following Trump’s softened tone on China tariffs. While the price drop may continue in the near term, analysts expect gold to extend its long-term rally due to ongoing uncertainties.