Investing.com - Gold prices edged lower in European trading on Tuesday, one day after rallying to its strongest level in five months as investors monitored continued tension on the Korean peninsula.
Comex gold futures shed $7.40, or around 0.6%, to $1,284.50 a troy ounce by 3:10AM ET (07:10GMT). Meanwhile, spot gold was down $2.00 at $1,282.70.
The yellow metal settled higher for the fourth session in a row on Monday after hitting its strongest since early November at $1,297.40.
Tension surrounding North Korea has mounted over the past week as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang, boosting demand for safe-haven assets.
Lingering worries about the upcoming French presidential elections on April 23 further supported demand for assets perceived as safer.
Also on the Comex, silver dipped 12.4 cents, or about 0.7%, to $18.39 a troy ounce. It touched its highest since November 11 at $18.65 in the previous session.
The dollar index, measuring it against a basket of major currencies, was flat at 100.20 in London morning trade after rising to 100.31 earlier. It touched a five-month low of 99.91 on Monday.
Meanwhile, the 10-year U.S. Treasury yield was at around at 2.24%, one day after breaking below 2.2% for the first time since November 17.
U.S. housing starts and building permits for March, as well as industrial production, are due later in the session.
Elsewhere in metals trading, platinum fell 0.5% to $985.65, while palladium slipped 0.2% to $787.22 an ounce.
May copper futures lost 3.9 cents to $2.557 a pound.