Gold fell by about 1% on Tuesday, as signs of easing trade tensions between the United States and China led to a decline in safe-haven demand, while investors awaited key economic data to assess the Federal Reserve's policy outlook.

Spot gold prices dropped by 0.8% to reach $3,315.84 per ounce as of 2:22 PM Eastern Time (6:22 PM GMT).

U.S. gold futures settled down 0.4% at $3,333.6.